Every day, we receive numerous phone calls, text messages, and web inquiries from homeowners eager to know the estimated value of their homes. With home prices soaring, it’s no wonder that many are considering taking advantage of this rise in value and selling their properties. Homeowners are curious to know the estimated value of their home in today’s market or if they’d sell today, how much would they get?
How to Find the Value of a Home: A Comprehensive Guide
To get an estimate for your home, there are 3 main types of Valuation:
It is an estimate of the property in comparison to similar properties. Municipalities and counties employ an assessor to value property so they can appropriately assign property taxes to it.
- Fair Market Value
- Appraised Value
- Assessed Value
Let’s dive deeper into these valuation methods and explore how to find the value of a home.
1. Fair Market Value
Fair market value is the value of property as determined by the marketplace (or objective purchasers) rather than as determined by a subjective individual. This valuation reflects what your home resembles to potential buyers compared to homes nearby. You should consider the price of homes sold similar to yours (same number of beds and baths, square footage, floor plan). If you work with a realtor to assist you with selling your home, your representative will look at the comps to check what buyers have been willing to pay for a property comparable to yours.
2. Appraised Value
Appraised value is different from fair market value. A home’s appraised value is determined by a state-licensed real estate professional known as an appraiser. This property valuation is based on recent sale prices of properties in your area and other deciding factors. Consider the location, size, and condition of your home, as well as any renovations you’ve completed. An appraiser will take all these factors into account to provide an accurate valuation.
3. Assessed Value
Assessed value is a property’s determined valuation used to calculate the appropriate tax rates. An assessment considers sales of similar homes, as well as home inspection findings, in its final determinations. Municipalities and counties employ an assessor to value property so they can appropriately assign property taxes to it.
How to Find the Value of a Home: 4 Essential Methods
Now that you know the three types of valuations, here are the ways on how to find the value of a home:
- Automated Home Valuation
In this digital age, it’s incredibly easy to access a variety of online tools that offer fast home value estimates. These are automated valuation models that use algorithms or statistical modeling techniques and software to value properties. Some popular tools include:
- Zillow Home Value Estimator
- Realtor.com Home value estimator
- Redfin Home value estimator
These tools are perfect for sellers or buyers who are curious to know about the estimated value of their home.
- Hire an Appraiser
If you want a more precise home value estimate to use for consulting with your mortgage lender, hiring an appraiser is the way to go. Mortgage lenders usually avail appraisers’ services to get the value of a house before they approve your loan. An appraiser will provide a detailed and accurate valuation based on various factors, including recent sales in your area, the condition of your home, and any improvements you’ve made.
- Ask Real Estate Agents for comparative market analysis
If you are selling or considering selling a home and want to get the most money in your pocket, you can ask a realtor for a free comparative market analysis. They will pull out data on recently sold properties comparable to yours in the area. This analysis will give you a clear picture of what buyers are willing to pay for homes similar to yours, helping you set a competitive price.
- Companies that Buy Houses
If you are considering selling your home as-is, want to close fast, and don’t have the time and money for repairs and showings, this option is for you. Companies like Oak Street Properties, which buys houses in Arizona, offer free valuations for your home by giving you an offer within 24 hours. They will pull out data of recently sold properties in the area comparable to yours. In determining how much they could offer; they consider the following factors:
- Year Built
- Number of Bedrooms and Baths
- Lot Size and Square Footage
- House Condition
- Home Improvements/Additions
- Sold Properties Nearby
To get to know more about how our home buying process works, call us at 480-637-5500.
By understanding these valuation methods and utilizing the available resources, you can get a clear and accurate estimate of your home’s worth. Whether you’re looking to sell, refinance, or simply satisfy your curiosity, knowing your home’s value is an essential step in making informed decisions about your property. Happy home selling!