Did you know that seventy-three million individuals in the United States own houses? If you fall in this category, you’re likely curious about the value of your home.
Unfortunately, getting a clear figure can be easier said than done. So, what are some of the different ways you can estimate home value?
If you want to learn the answer to this question, you’re in the right place. In this article, we’ll walk you through three different methods for determining value. Let’s get started!
Use Online Tools
There are plenty of home value estimators that you can find online. These automated valuation models use public records to quickly estimate the price of your home.
Specifically, they look at things like tax assessments, deeds of ownership, recent sales in the area, and property transfers to come to a figure.
Often these tools can get within 10% of the market value. But, this is still a pretty large margin. So, these online home value estimators are far from precise.
Comparative Market Analysis
If you want a more accurate estimate of your home value, try contacting a real estate agent in your area. These individuals will take a brief look at your home, and the local real estate market, to give you a figure.
Most of the time, comparative market analyses are used strictly for listing purposes. The upside is that they cost very little to perform.
In some cases, a real estate agent will do it for free if you’re selling your home. The downside is that it’s not as accurate as getting your home appraised by a professional appraiser.
Hire a Professional Appraiser
If you took out a mortgage to get your home, odds are you’ve dealt with a professional appraiser before. Most lenders will require a professional appraisal before they approve your loan.
That way, they know exactly how much money you owe them. This is by far the most accurate home appraisal method.
That’s because they look at three distinct areas: the market, the specific characteristics of your house, and any comparable properties in the area.
It’s a great option if you have renovated parts of your home or installed other elements that add value. For example, maybe you redesigned your kitchen and bathroom and want this reflected in the price of your home.
Or, if you had a solar panel installation, you’ll want to know the value of solar energy that’s being brought to your home.
Enjoy Learning How to Estimate Home Value? Keep Reading
We hope this article helped you learn how to estimate home value. As you can see, determining home value isn’t an exact science. Depending on which method you go with you might get a different figure.
So, remember to treat the value of your home as an estimate that might be worth more or less depending on market conditions. Can’t get enough content? Keep reading to find more just like this one.