How Do I Find the Value of My Home?

How much is your house worth? This is likely a question that has crossed your mind on more than one occasion. Although you know what you paid for your home, you may not know the true value of your home right now. If you are interested in knowing how much your home is worth, there are some things you can do that will help you get the value.

Use Online Valuation Tools To Find Value Of My Home

One of the easiest ways to check the value is by using one of the many available online valuation tools. These automated valuation tools can be found on many of the popular real estate sites including Redfin and Zillow. You will find that some lenders also offer these types of tools.

You might be wondering how an online tool can tell you the value of your house. It’s because they make use of public records. This includes things like tax assessments, deeds, and property transfers. This, combined with their modeling system, works to provide a prediction of your home’s value based on recent listing prices and sales prices in your area.

These tools that are available for the public to use can help to give you a general idea of how much your home might be worth. However, there are many factors that these tools can’t account for, such as the condition of your home. This reduces their accuracy somewhat.

However, there are also automated valuation tools in use for real estate pros and lenders that use a confidence score. This indicates how close they think the estimate is to the market value. These tend to be more accurate, but they could still be somewhat off, and it might be in your interest to choose another method if you want to get closer to the true value.

Comparative Market Analysis

A real estate agent can provide you with a comparative market analysis (CMA). The agent will provide you with the valuation for your home, but keep in mind that this is still just an estimate. It does not go into as much detail as would an appraisal. The CMA is generally used when you are going to be listing your home and to provide it with a value for marketing.

Federal Housing Financing Agency House Price Index Calculator

The Federal Housing Financing Agency (FHFA) could also provide you with an estimate of your home’s value. The house price index calculator uses what’s known as the repeat sales method. The FHFA tracks the value of a home for each of the times it’s been sold. The information from those sales is then used to estimate how the home value would change in different markets.

While this method could work for a basic estimate, it is not perfect. It only looks at conforming home mortgages, and there are no adjustments made for the season or inflation. This means that it will not be entirely accurate in many cases. It can still work well to give you an idea of how much your home has appreciated.

Check Comparable Properties To Find Value Of My Home

Another way to help get an idea of your home’s value is to check comparable properties in your area. This is something that real estate agents will do when they are listing your property, but you can do this on your own, as well.

You will compare homes in the area that have as many matching qualities to your property as possible. This includes things like the location, the size, condition, upgrades, number of bedrooms, etc.

You will want to check online sites that offer MLS listings. Check to find comparable properties in the area and look at their recent sale prices. If you find that there aren’t enough sales to get a good estimate, you could also look at the listing prices for properties. However, you want to be careful about looking at listing prices. Often, those prices are inflated because that’s what the seller wants to get for their property, not how much it is worth and will sell for.

You have to collect between three and five valid comp properties to get a good estimate and range for the market value for your home. Also, keep in mind that the value of your home is ultimately what someone is willing to pay for it at the time. There are many factors that you can’t control that will affect your home’s value.

Work with an Appraiser To Find Value Of My Home

You can hire an appraiser to provide you with an estimate for your home value whenever you would like. Appraisers are professionals that can help to find the true value of your home. They look at comparable properties, but they also look at certain characteristics of the home that could increase or decrease the value. They will check the area where the home is located, as well.

They use this information to provide you with their professional estimate. It does not guarantee 100% accuracy, but having a professional do the valuation is typically going to be more accurate than doing it on your own.

Why Should You Worry About Your Home’s Value?

You should know how to calculate the value of your home because it will help you to be more informed. When you know your house’s value, it can give you a better understanding of your finances, as well.

It will help to prepare you if you are thinking about selling your house or refinancing your house. It will help you understand whether you should try to get your property taxes lowered, or if you should use the equity in your home. You will find that when you know how to value a home properly, it can also help you if you are considering buying a new home.

As you can see, there are many options available when you are trying to learn the value of your home, and there are plenty of reasons to do so. Take the time to use one or more of these methods, so you can have a better idea of your home’s value.