While spring is usually one of the busiest times in the real estate market, COVID-19 has had a significant impact on the market. If you were planning to sell this spring, you may be wondering
How to determine the value of your home
Knowing the value of your home is important, whether you're looking to sell, to refinance, or simply to increase your awareness of one of your largest investments. There are several strategies with varying accuracy that you can use to determine your home's value.
Online Valuation Tools
If you do a simple search online, you will come up with dozens of home value estimators. Using public records like property transfers, deeds of ownership and tax assessments along with some mathematical modeling, these tools try to predict your home’s value based on recent sales and listing prices in the area. However, since the primary purpose of these tools is often lead generation, and they are programmed to give values even when the data is limited, they are not always very precise. An online tool can be a great place to start at getting a ballpark value for your home, but a real estate agent has access to more precise resources.
Comparative Market Analysis
A comparative market analysis is prepared by a real estate agent. This detailed report provides the agent's evaluation of the home and the market to provide an estimate of your home's value. This analysis is often done in preparation for listing a home.
Hire a Professional Appraiser
When purchasing a home or refinancing a home, lenders require that a home be professionally appraised before they will approve the loan. However, you can hire an appraiser at any time to estimate your home value. You will have to invest money to have this done, but the appraiser will do a detailed evaluation of the market (the region, city and neighborhood), the property itself (condition and features), as well as comparable properties.
Evaluate Comparable Properties
You can always do your own analysis of comparable properties, although this will require value judgments that can be difficult. There is no house exactly the same as yours, so you must judge how much differences things such as lot size and appeal, number of bedrooms or bathrooms, and outdated features should impact the price of your home. However, looking at similar listings in your town (and if available, your neighborhood) can be a helpful place to start for getting a sense of the value of your home.
Ultimately, your home's value is whatever someone is willing to pay for it. Consequently, it is not a precise science. However, at Augustedge our knowledge and understanding of past and present market trends can be a great asset in determining the value of your home.
From farming in Warden, WA, to living in Australia and then back to Wenatchee, Iâ€™ve always been profoundly aware of the fundamental need to help others. Whether through their financial picture or he....