How Much Is My Property Worth
There was a silver lining for homeowners, despite the roller coaster trip that has taken place over the past year or so: Home prices have climbed significantly. You may be thinking if you should take advantage of the rising value of your property and sell it, or take advantage of its increased equity. It’s a good idea to start by asking yourself, “How much is my house worth?”
What is the value of my home?
Estimating the worth of a home is a complex process, and it’s important to keep in mind the three primary methods of valuation:
When determining the fair market value of your house, consider how it compares to similar properties in the region. Ask yourself how much your house is worth compared to others in your neighbourhood (same number of bedrooms and bathrooms, square footage or outdoor space, say). In order to sell your home, a real estate agent will first look at comparable properties to see how much buyers are ready to pay for a similar property.
Your home’s appraised value is based on comparable properties, but it is not the same as its fair market value. A licenced appraiser takes into account the location, size, and condition of your house, as well as any changes you’ve made, when determining the appraised worth. Appraisal values are taken into consideration by mortgage lenders when a borrower is looking to purchase a home or refinance their existing loan.
Find out how much your house is worth by using an online estimator.
Anyone who wants to get an idea of the value of a home, whether they’re a buyer or seller.
There are a slew of free resources available online that can quickly evaluate the value of your house. Calculations are based on algorithms and publicly available data such as recent sales, tax assessments and other public documents in so-called “automated valuation models” (AVMs).
Because there are so many home value estimators, your estimate may differ from one to the next. Among them are:
- Estimator for Zillow’s “Zestimate” home value
- Realtor.com Value estimation tool for your MyHome property
- Estimated value of a home on Redfin
- Use the Chase Home Value Estimator.
Home valuation calculator by RE/MAX
According to Duffy, “home value estimators are terrific places to start when you’re trying to figure out the value of your home.” This value, however, is based on an algorithm that typically takes into account the number of beds, square footage, location and market activity… For example, the house’s current condition, curb appeal and external variables like traffic noise aren’t taken into account.
There are some drawbacks to these computer-generated home values. They may be based on inaccurate or inadequate information, or they may fail to take into account, for example, a recent high-end kitchen or bathroom renovation
Inquire with a real estate agent for a complimentary comparative market analysis
Those who are selling or thinking about selling a home are the best fit for this product.
If you’re planning to sell your home, most real estate agents will provide you with a complimentary comparative market analysis (CMA) in an effort to earn your business. Data on recent sales of comparable properties is gathered by the agent to compile a Comparative Market Analysis (CMA). The worth of your property is then estimated based on their expertise in the area and any unique features of your home. It’s also possible that a buyer’s agent can provide the same service for any house you’re considering making an offer on.
There are advantages to having a professional to help you locate comparables, answer your concerns, and provide assistance.
There are several drawbacks to working with a real estate agent. Estimates will be less accurate if there haven’t been many sales in the area or if the comparable properties aren’t quite similar to yours.
Your county or municipal auditor’s website should be checked as well.
• Ideal for: Those who wish to know how much their house is worth in terms of taxes.
A searchable database of property tax assessments is maintained by county auditors and can be accessed online. The assessed value of your home may have increased, and you may check this by comparing it to similar properties that are currently on the market.
There are many advantages to having objective data available for comparison.
However, this estimate is based on the taxable valuation of your property, which doesn’t take into account market considerations such as the time of year or the competitiveness of your home’s market. It may be necessary to conduct additional research in some areas where assessed values differ significantly from market values.
Use the FHFA House Price Index calculator to spot trends.
It’s ideal for anyone curious about local real estate market trends, whether they’re looking to buy or sell a home in the near future.
The House Price Index (HPI) calculator from the Federal Housing Finance Agency provides yet another perspective on the worth of a home. Using historical data on home values in your state or metro region, the programme calculates an estimate of how much each home in the area is expected to be worth in the future.
Pros: Based on data from millions of home sales, the calculator can help homeowners compare the relative affordability of different neighbourhoods over a period of time.
A disadvantage of this calculator is that it cannot determine the market worth of a specific home. Instead, it looks at how the value of a residence has changed over time. This will offer you a rough notion of the market in your area, but it won’t be able to tell you information about your home.
Use a certified appraiser.
Anyone who wants to get the most accurate house valuation possible before meeting with a mortgage lender should consider using this service. • Who it’s best for:
As part of the lending process, banks utilise appraisers to verify the value of properties. It’s not mandatory for house sellers to hire an appraiser, but some do. As with a real estate agent’s Comparative Market Analysis (CMA), the appraiser takes into account the property’s features, such as the number of bedrooms and bathrooms, as well as comparable sales.
A professional appraiser is one who is qualified to give an unbiased assessment of a property’s value because they are usually certified or licenced by the state in which they work.
You’ll have to pay for the lender’s appraisal if you want a mortgage. According to HomeAdvisor, an appraisal costs an average of $340, but can range from $300 to $420.