The price of your home!

Here is another way to determine the value of your home. Imagine that you are moving and that you are going to buy the house you are in now. Also, you don't have any "profit" from another house to use in buying your house. With this restriction, what could you pay for your house? Now knowing what you could pay, what would you pay?

Also, try this. Take the price that you paid for your home and plug that amount into a financial planner calculator, Use the number of years you have owned the home and use a 7.5% interest rate and compound annually. I went to interest.com and used the CD calculator for this example. I bought at $190,000.00 and have been in my home for 10 years. At 7.5% a year, which is just above the historical average for home appreciation, my home is worth $392,000.00.

For me, these two methods yield about the same result. I could pay more now, due to some good professional fortune, but I would only pay about $425-$450 thousand for this house. So I will use $392,000.00 as my starting point for my house listing price. I will look at the market to see what is selling, not what is listed, and evaluate how bad and how fast I want to sell my home. If I had to move next month, my List price is $399,000.00.

Drop me a note if you want help with your math.