What are the Standard Ways of Finding Out How Much a Home is Worth?

By
Real Estate Agent with Bankforeclosuressale.com

 

A lot of people are aware that the market has fluctuated greatly over the last decade and that the housing market is starting to rebound. However, some homeowners may not realize that their values have likely increased over the past couple of years since the 2008 collapse.

 

On average, the listed price for an unattached home is clocking in at just under $190k. This is an increase of over 5.5 percent in a two year span. One of the biggest reasons for this is the inventory decrease, which is over 20 percent.

It all depends on location to determine the exact change, though. There are ways in which you can value what your home is worth right now. There are unconventional ways, but the standards are usually the most accurate. Here are some of the methods you can use to find out an estimated value:

 

Hire an appraiser

 

If you are looking to sell your home or just get a value for reference, then an appraiser will be the most accurate way of valuing the property. They have the knowledge to figure out exactly which details increase or decrease the value.

 

There are many different details that the appraisers will look at, and the best part is that they are fair. They do not work directly with lenders or real estate companies so they give a neutral opinion as to the exact value.

 

It’s also a great way to find out which areas of the house need improving in order to raise the overall value. Knowledge is key when building your equity, so it’s the perfect way to determine how to maximize value.

 

Market Value

 

Market value is defined as “the estimated amount for which a property should exchange on the date of valuation between a willing buyer and a willing seller in an arm’s-length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently and without compulsion.”

 

While it may not be as accurate as an appraisal, it’s still a good measure to find out what the home is worth. Honestly, you can determine the market value yourself, but it’s best to find out what the other homes in the area are being valued at to get a more accurate reading overall.

 

Take to the internet

 

Websites like Zillow will be able to find out a rough estimate of your home’s worth based on a determined amount of factors. There is even a way in which you can determine how much you could charge for rent if you were to decide that renting out your property is a good idea.

 

There isn’t a great amount of detail that goes into it since there isn’t an actual appraiser poking and prodding through the property and the surrounding area, but it will give you an idea.

 

What happens is that automated valuation models are used in a computer simulation. There is a big range that prices fall under and can be up to 10 percent higher or lower than the actual value. However, many of these will be within 5 percent.

 

Do your own assessment

 

If you can determine what the other homes in the area are selling for and do a little bit of additional homework, you can determine what would be an estimated market value. The basic factors that you need to know are the location, size and amount of bedrooms and bathrooms within the home.

 

There are some details you need to look for as well, but a license professional would be better suited to determine if repairs or replacements need to be made. This includes electricity, plumbing and foundation.

 

So now that you have an idea of what to look at, you can do any of these methods to find an estimated home value. If you are feeling up to it, you can take all of them and average it out to find the right price. It’s useful to know so you can raise the value if you are looking to sell.

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