Key points
- The right price comes from recent closed sales of similar homes nearby, adjusted for differences.
- Texas does not make sale prices public, so online estimates and tax values can miss by a lot.
- A good CMA includes closed, pending, active and expired listings, not just the highest sale.
- Similar houses sell for different prices because of condition, lot, street, timing and terms.
- Ask for a price range with the reasoning shown, then decide where to list within it.
How do I know the right price for my house?
The right price is the one recent closed sales of similar homes support, adjusted for how your home differs, and tested against the homes a buyer would see next to yours this month. It is not what you paid plus improvements, and it is not what you need to net.
- Find closed sales of homes like yours, as close as possible: same street, same subdivision, then nearby.
- Prefer recent sales, because older sales may reflect a different market.
- Adjust for differences: size, bedrooms and baths, lot, condition, updates, pool, garage, street.
- Check homes under contract now. They show where the market is heading before those sales close.
- Look at active listings, which are the buyer's alternatives to your home.
- Look at expired and withdrawn listings, which show prices buyers refused.
The result is a range. Where you list within it depends on your timing, the home's condition and how much competition you face.
What is a comparative market analysis?
A comparative market analysis, or CMA, is a realtor's estimate of your home's market value based on recent sales, pending sales and current listings of similar homes. It is not an appraisal, and it costs nothing, but a good one follows the same logic an appraiser does.
What a useful CMA shows you
- Each comparable home, with its address, size, lot, condition notes and closing date
- Why each one is better or worse than yours, and by roughly how much
- What is under contract and active right now in your price range
- A suggested range and the reasoning behind where to list
If a CMA lists only the highest sales nearby and none of the homes that sat unsold, ask why. A price built on the most optimistic case usually ends in a reduction.
Is Zillow accurate for Dallas home values?
Use it as a rough first look, not as a price. Automated home value estimates are produced by software from public records, appraisal district data, past listings and whatever sales data the site can get. They are fast and free, but they have two limits that matter in Dallas.
First, they cannot see inside your house. A model does not know you replaced the roof, opened the kitchen, redid the baths or leveled the foundation, and it does not know your neighbor's house has none of that. It also cannot tell that one home backs to a busy road and another to a creek.
Second, Texas is a non-disclosure state. Sale prices are not recorded in public records, so the software often has to infer them. In neighborhoods with few sales, or with a wide mix of original and new homes such as Preston Hollow, that gap shows.
A walkthrough by someone who also has closed MLS sales is the way to close the gap. Andy's free pricing review does that.
Why do similar houses sell for different prices?
Because they are less similar than they look from the street. Two homes with the same square footage and bedroom count can differ in many of the things buyers pay for.
- Condition: roof age, foundation history, HVAC and plumbing, and what the inspection found
- Updates: a finished kitchen and baths against original ones
- Lot: size, width, trees, slope, a pool, a corner, a back alley
- Street: through traffic, nearby commercial uses, floodplain, creek frontage
- School attendance zone lines, which can split a neighborhood
- Timing: a sale in a busy month and another in a slow one
- Presentation and marketing: photos, staging, pricing, how many buyers saw it early
- Terms: a seller credit for repairs or closing costs lowers the real price, even if the recorded price looks the same
Why is my neighbor's house worth more than mine?
Usually because of a difference in condition, updates, size or lot, or because the price you heard is not the price it sold for. In Texas you cannot look up a neighbor's sale price in public records, so the number you hear may be the asking price, a guess or a rumor.
If the neighbor's house really did sell higher, the reason is usually visible on a walkthrough: a newer roof and systems, updated kitchen and baths, an extra bedroom, a wider lot, or a better position on the street. Some differences you can close before listing. Others, such as the lot, you price around.
How much could my house actually sell for?
Within a range set by the comparable sales. Whether you land at the upper or lower end depends on what you do before and during the listing. A home that is clean, repaired, well photographed and priced in line with the evidence draws more buyers in the first weeks, and more buyers is what moves the result toward the upper end.
Ask any agent for the low and high end of the range and what would move you from one to the other. That conversation is more useful than a single number.
Can a realtor give me a free home valuation?
Yes. Listing agents prepare comparative market analyses for free, because it is how they earn the chance to sell your home. You are under no obligation to list with them.
Andy Scott's free pricing review covers comparable closed sales street by street, condition, lot, updates, what is under contract now, a price range and a plan. Contact Andy to request one.
What should I have ready for a pricing review?
Bring the facts a buyer's inspector and appraiser will ask about. The more an agent knows about your home before pricing it, the less the price depends on guesswork.
- A list of updates with the year each was done: roof, HVAC, water heater, windows, kitchen, baths, flooring
- Foundation history: any engineer's report, repair invoice and transferable warranty
- Your survey, and a note of any changes since it was made, such as a new fence, pool or addition
- Known problems you would have to disclose, even small ones
- Your loan payoff estimate, so the review can show what you would net
- Your timing and your next move, which affect how to price within the range
Be candid about what is wrong with the house. A price set without those facts tends to come apart during the buyer's option period, when you have the least leverage.
Questions people ask
Is my appraisal district value what my house will sell for?
No. The market value on your DCAD or other appraisal district notice is set for property tax as of January 1, by mass appraisal and without an inspection. It can be well above or below what a buyer would pay.
Can I look up what my neighbor's house sold for?
Not in public records: Texas does not require sale prices to be disclosed. Realtors see closed prices in the MLS, which is why a CMA from a local agent is more reliable than an online estimate.
How many comparable sales should a CMA use?
Enough to show a pattern, usually a handful of the closest matches, plus pending and active homes. Fewer, closer comparables are more useful than many distant ones.
Andy Scott is a Dallas Realtor and founding member of the GPS Group at Dave Perry-Miller Real Estate. He grew up in Dallas in a real estate family, has been licensed since 2005, and has helped buyers and sellers for more than 20 years. About Andy · What's my home worth?
