Updated: 2 days ago
If you want to sell your house, it is a good idea to know a general value of what your house is worth so that you don't get taken advantage of! In this blog, we will discuss how to value your home and why you should always know your home's value.
Why Home Value is Important
If you want to sell your house in the next year, you'll need to know what it's worth now. The value of your property will give you an estimate to what interested buyers are ready to pay for it. Knowing this information may help you decide on when to sell and how much you can expect to profit from the transaction. If you don't know the current value of your home, you're not alone. Many borrowers aren't sure what “home value” is or how to calculate it. This article will explain what home value is and how to calculate it for yourself.
How is Home Value Calculated?
There are a few different ways to value your home. The most common way is by using recent sales data from similar properties in your area (also known as the Comparative Market Analysis, or CMA). This method looks at location, size, and condition when determining value. Other factors, like the school district and current market conditions can also affect the value and should be accounted for.
How Do You Determine The Value of Your Home?
Before you can buy, sell, or refinance your property, you must first assess its worth. Let's look at four methods for accurately determining your home's value.
1. Use Online Resources
The internet is a valuable tool that can be used to research your home's worth. A quick search will reveal numerous companies like Rocket Homes that offer home value estimates. Simply enter your address and some basic information about your property, and you'll be given an estimated value. Keep in mind that these online tools are just estimations and shouldn't be used as the final word on your home's value.
2. Hire A Professional Appraiser
The best way to get an accurate value of your home is to have it appraised by a professional. An appraiser will take into account all factors that could affect your home's value, such as its age, condition, location, and any recent upgrades or renovations you've made. While an appraisal will give you the most accurate number, it can be expensive (usually around $400-$500).
3. Pull ‘Comps’ On Similar Properties
If you're comfortable researching homes in your area, you can determine the value of your home using a comparative market analysis (or "CMA"). To do this, you'll need to pull recent sales data on similar properties that are close to yours. For example, if your property is located in a quiet neighborhood with good schools and has three bedrooms and two bathrooms, look for houses in those areas that have similar features and are also selling at a comparable price point. Once you've gathered all the information, compare it to your property and use it to estimate what buyers may be willing to pay for yours.
4.Consult with Your Local Real Estate Investors
If you want to get an accurate estimate of your home's value, your best bet is to consult with a real estate professional. If you're not ready to spend the money on an appraisal, you can simply reach out to a local investor. It's their job to be an expert on your market and they may often provide more information than an agent or online service.
Always Be Tracking The Value of Your Home
Keep in mind that your home's value can fluctuate over time, so it's important to stay up-to-date on its worth. This way, you'll know when the time is right to sell or refinance and can maximize your profits.