If you’re considering selling, you probably want to know how much your home is worth. The price potential buyers are willing to pay for your house is its value. Your choice of an asking price will be aided by knowing this information. On many fronts, the last few years have been an emotional roller coaster. In the housing market, there was a ray of hope for sellers during the height of the pandemic: skyrocketing home prices amid brisk buyer demand. The Federal Reserve’s efforts to reduce inflation caused mortgage interest rates to gradually increase throughout 2022, which dampened the enthusiasm of homebuyers. Home prices then decreased as a result of this. Homeowners may be left wondering what their property is currently worth and whether it’s a good time to sell or use their equity as a result of all these detours.
Your home’s value is influenced by a number of variables, such as:
- The Location: If your house is in a desirable area with good curb appeal and a relatively low crime rate, the worth will be higher. Its value may also increase with access to nearby roadways, shopping areas, and dining options.
- The Size and State: Your home’s size and design will also have an impact on its market value. Additionally, recent improvements like new paint or updated appliances can increase the value of your home.
- Schools: The value of your home can rise significantly if you live in a great school district. According to a National Association of REALTORS® study, 25% of home buyers think about the local schools’ standing before making a purchase.
- Comparable Residences: Homebuyers might check out houses that are comparable to yours to see how much they sold for previously.
- Current Market: The value of your home will also be impacted by the current market conditions. You might be able to ask for a higher price for your home, for instance, if there are more buyers than there are available properties. Some people might be discouraged from purchasing a home by factors like high-interest rates.
5 Methods to Determine the Value of Your Home
1. Utilize Home Estimator Tools
The use of an online home valuation tool is one of the simplest ways to figure out the value of your house. These instruments also referred to as automated valuation models, or AVMs, produce estimates using algorithms and data that are readily accessible to the general public, including recent sales, tax assessments, and other public records. Since they all employ various methodologies, your estimate may differ.
2. Employ A Qualified Appraiser
By hiring a qualified appraiser, you can determine the value of your house in one of the most reliable ways possible. Before approving a mortgage, lenders will rely on an independent home appraiser, but homeowners are not required to use one. However, if you’re getting ready to sell, getting help from an appraiser is a good option.
3. Find a Reliable Local Expert
In an effort to secure the business of sellers, real estate agents frequently provide a comparative market analysis (CMA) at no cost to them. The agent gathers data on recent sales of comparable properties in the area to complete the CMA. They then calculate its value based on their familiarity with the area and any unique features of your property. The same assistance can be given by a buyer’s agent for any house they are interested in making an offer on. They are equipped with the resources needed to dig deep and determine a precise market value.
4. Determine the FHFA House Price Index’s trends
Another opinion on home value is provided by the House Price Index (HPI) calculator from the Federal Housing Finance Agency. Based on the rate of appreciation of all the homes in the area over a specific time period, the tool evaluates historical mortgage information to project what houses in your state or metropolitan vicinity are likely to be worth.
5. Visit the Website of Your County or Municipality
For homeowners who are interested in learning how much their upcoming property taxes will be, the records of the local tax auditor are an invaluable resource. Additionally, it can help you estimate the base value of your house. County or municipal auditors typically base their valuations on information about the prices that comparable homes are selling for in your area or city.
The Bottom Line
You don’t have to rely on guesswork to figure out how much your house is worth. You can start looking into home values right now thanks to the wealth of resources available. The better position you’ll be in to make better decisions, notably when it comes to selling your property or refinancing your mortgage, the more information you have. You can find out how much your home is worth by using an online valuation device, hiring an appraiser, working with a real estate agent, or looking at nearby comparable properties.
