What is the Estimated Value of My Home? 4 Simple Ways to Assess Actual Worth

by Susan Paige on October 18, 2019 · 0 comments

Finding out the estimated value of your home from time to time is always a great move. In addition to getting an overview of your financial health, a price assessment can help you understand the equity available as a source of emergency funds. Further, you’ll learn about the best price you can get in case you wish to sell the property or get refinancing. Above all, regular evaluation lets you know about the right property taxes to pay in your returns each year. Search online and you’ll find various tools that give you the estimated value of the house with just a few clicks. You can also work with an expert in real estate evaluation who’ll come in to give you an appraisal and estimate.

  1. Automated Valuation Models

Automated Valuation Models (AVM) are a good starting point to get the estimated value of your home. Like this feature on Chase Bank reveals, such tools take into consideration factors like the listings of homes within your community, ongoing interest rates on mortgages, and the value of the most recent sales transactions. Other variables include mathematical algorithms and data from public records including the latest tax evaluations, registration of ownership deeds, and details about property transfers. AVM tools also reveal a “confidence score” expressed in terms of percentage. This figure tells you how close the tools think their estimates match the market prices that prospective buyers would be willing to pay for the property. Although every tool has their own systems of calculating the confidence scores, a 90% score indicates that the market prices are likely within 10% of the estimates.

Home Value Estimator apps are simple to use. You’ll add the address or use Google maps to identify the precise location of the property. Click on the “Get Value” button and get instant values. In case you’re planning to make renovations to improve the curb appeal and value of the property, you’ll add the cost of the projects. The app will calculate the additional value of the house you can earn after upgrades.

  1. Evaluation from a Local Realtor

If you’re looking for a more accurate estimated value of your home, inviting a professional real estate is also a practical move. Like the folks at Wrightwood Homes inform, the agent will arrive at your home and give you an estimate called a Comparative Market Analysis (CMA). This report provides you with an approximate value by taking into consideration the sale price of similar houses in your community that have sold in recent times. Other factors that the realtor will keep in mind include:

  • Size of the house and property where it stands including the actual square foot area
  • Type of house, whether condo, townhouse, single-family home, starter house, or any other
  • Location of the property, for, instance, proximity to a freeway or within a school district
  • Building styles and views, for instance, beachfront or urban
  • Number of bedrooms and bathrooms
  • Age of the house
  • Amenities included such as a deck, pool, fireplaces, and covered patios
  • Condition of the utilities and other fixtures
  • Any kinds of damage that can affect the structural integrity of the house
  • Condition of the heating, cooling, and ventilating systems of the house

An important factor to keep in mind is that the ultimate value of the house depends on the actual price a buyer is willing to pay for it. Your local realtor will provide information about the comparable houses sold in the last few months just as this article on Nolo outlines. You’ll also receive information about the difference in the asking or listing price and the final price the house was sold for. Realtors typically spend time visiting other homes in the neighborhood and can give you valuable inputs.

  1. Estimate from a Professional Appraiser

While most agents provide a good evaluation, getting an authoritative opinion also works. At the time of purchasing the property, the bank or lender offering you the mortgage has likely engaged a professional appraiser to give you the estimated value of the house. Even if you don’t intend to sell the house, you can always hire an expert for an appraisal. The service could cost you a few hundred dollars, but is well worth the report you’ll receive. Such personnel take into consideration factors such as:

  • Condition of the house and its depreciated value
  • Kind of land it stands on, and any other notable features. In case you’ve made renovations and improvements in the house, the added value will affect the new price.

2.  Self-Evaluation for FSBO Homes

Many homeowners prefer to sell their houses without involving a realtor. Such properties are called Fizbos, which is short for FSBO, acronym for For Sell By Owners as explained by John Wake on the Forbes magazine. Contrary to popular belief, owners don’t sell at prices below the market price. If you’re looking for an estimated value of your home, consider visiting open houses in the community, particularly the ones that are offering direct sales. While most homes will have individual features that affect their prices, you’ll have a good understanding of what to expect in case you do decide to sell. When comparing features, you’ll add and deduct from the price according to the factors such as the exteriors and interiors of the house and if they have been recently upgraded. Or, the extent of repairs a new owner may need to make before moving into the house. The age and condition of the appliances that come with the house will also affect the final value of the property.

Getting an assessment of the estimated value of your home can help you work out the family’s present and future finances. For instance, you’ll pay insurance premiums and property taxes accordingly. You’ll also have an overview of the worth of the house and the funds you can raise using it as collateral if ever needed. Use the apps available online or get a professional to assist you.

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