How to Compare House Prices to Nail Down Your Home’s Value
To figure out the current value of your home, compare house prices with similar nearby properties that have recently sold.
The increase in housing prices in recent years has prompted many homeowners to wonder about the value of their own, especially as they compare house prices in their local area. At the end of the year 2024, 32% of top agents surveyed by HomeLight said we were in a seller’s market, 42% said we have a balanced market, and 26% said it’s a buyer’s market.
Some markets saw particularly steep gains, others are transitioning to a more balanced market, and some markets saw sales stalled due to rising mortgage rates.
So with all these changes, how do you figure out the value of your home? If you’re considering selling, getting it right means not leaving money on the table if you price too low, or having your house sit on the market if you price too high. Real estate agents are experts at price setting. Agents perform a comparative market analysis — comparing similar properties that have sold nearby — to arrive at a listing price.
We’ll take you through options that will help you compare house prices to better understand your home’s value.
Get an Estimate on Your Home’s Value
Our Home Value Estimator is a great starting point. Working with a top real estate agent is the next step to pricing your home and understanding your options. Local real estate agents can physically view the property, they list homes like yours every day, they know the neighborhoods, they know what’s trending, and they can call out unique characteristics on the property.
How to compare house prices in 5 steps
Whether you’re selling your home on your own (FSBO) or doing some pre-listing research, it’s essential to know how to compare house prices. Here are five ways you can compare house prices in your area.
1. Use an automated valuation model (AVM)
AVMs use data about your home and about the surrounding market to estimate home value. They are great for providing quick insight into your home value, but we recommend working with a top agent if you are selling, since an agent will know how to factor in aspects of your home that an AVM doesn’t see. This makes AVMs a great way to begin your research, but they aren’t going to be able to factor in things like recent upgrades and location factors.
HomeLight’s free home value estimator is an excellent place to begin your research. The calculator scours millions of public real estate transactions to predict how much your home is worth. First, you’ll need to answer a few questions about the property’s condition, age, etc. Then, you’ll receive a detailed analysis of your property.
