What Is My Home Worth? What Home Value Does—and Does Not—Tell You

If you are considering selling your home, one of the first questions you may ask is, “What is my home worth?” That is an important question, but the answer does not tell you everything you need to know about whether moving makes sense.

Home value is not the same as the money you will receive

A home's market value is not necessarily the amount you will have available after a sale. Selling expenses and other transaction costs can reduce the amount left from the sale.

Home equity matters

If you still have a mortgage, the balance owed on the loan is an important part of understanding how much money might remain after a sale and the costs of selling.

The next home matters too

Knowing the value of your current home does not tell you what the next home will cost. A lower purchase price can still come with property taxes, insurance, maintenance, utilities, HOA (Home Owners Association fee) costs, and other expenses.

What will your yearly housing costs be?

Compare the total yearly cost of the present home with the expected total yearly cost of the new home. This gives you a better picture than looking only at sale price or purchase price.

Don't forget selling and moving costs

Include expected selling costs and moving expenses. These are usually one-time costs, but they can be substantial enough to affect the financial comparison.

What the numbers cannot tell you

Home value does not measure how much you like your home, how easy it is to maintain, how close you are to family and friends, whether there are stairs, or whether the home will continue to meet your needs as you get older.

Use home value as one piece of the decision

Knowing your home's value can be useful. But the bigger question is what you would gain, spend, and give up by selling and moving.

That is why a complete comparison looks at yearly housing costs, selling and moving costs, and the personal considerations that matter to you.