How to Calculate Your Home Value
A home is a place to make memories, and for many, it’s a significant financial asset. Owners often bank on home appreciation gains as part of their financial planning. The tricky part is figuring out how much their value has grown since purchasing the property. Home prices vary widely within cities, neighborhoods, and even blocks, so how do you know figure out much your home is worth?
Ways to Calculate Home Value Yourself
Home appreciation is one reason why some owners choose to buy vs. rent. Owners expect to make money on their homes over time. Determining home values is a tricky business, especially if you’ve added home features that might increase value. Luckily, you have many avenues to pursue when finding out your home’s value.
Use Online Valuation Tools
Do an internet search for home value, and you’ll be served numerous free online home valuation calculators. You provide the calculators information about the home, like the number of bedrooms, square footage, and its address. The program compares the data to recent sales found in public databases to give an estimated market value.
Get a Comparative Market Analysis
Real estate agents are happy to provide homeowners with a free comparative market analysis (CMA). This analysis gives a ballpark figure of what the home could currently get from buyers if listed on the market. A real estate agent familiar with your neighborhood may be able to pinpoint the homes in the CMA most like yours based on included features and renovations.
Find Your Own Comps
Pull comparable listings yourself to figure out your home’s value. Go to a website that pulls MLS listings for your neighborhood. Look for homes similar to yours in size, location, condition, and upgrades. Make informed adjustments to the value of the comparable properties, like adding some value to a slightly larger or more recently updated home.
Hire a Professional Appraiser
Banks hire appraisers when a buyer seeks to obtain financing for their home purchase, but appraisers don’t exclusively work for banks. Hire one to give you an independent home appraisal. People use appraisers when they are preparing to list, considering refinancing, or going through bankruptcy proceedings.
Ways to Get an Independent Home Appraisal
A home appraiser is tasked with providing an impartial valuation on a property at a given time. While their report is similar to a comparative market analysis, the appraiser takes a closer look at the property’s condition. They will factor in home appreciation, location, and comparable properties.
To find a home appraiser, get recommendations from a source you trust, like a real estate agent, or search for a home appraiser online. Check they are an appraiser certified by your state.
Finding Your Home Value
In some of the best cities to own a home, understanding home value helps decide if it’s better to buy versus rent. In other cities, your best option is to find new home builders near you because new construction adds more value than purchasing existing construction. Whether you are buying new or resale, it is important to learn about home values in your neighborhoods so you can understand how much home you can afford. With the tools we have outlined, it is easier then you imagined to figure out what home or area can fit your budget.
Contributed to Your Home blog by Casey McKenna-Monroe
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