How To Determine the Value of Your Home

Right now, many people are considering selling their homes as home prices increase. You may have owned your home for many years and made some serious upgrades to it that have you wondering

“What is my home worth now?”

Maybe you have just recently purchased your home and have been considering improvements but are concerned with how that would affect the value of your home down the road when you decide to sell. Whatever the reason may be, you want to know how to determine the value of your home. Below I have outlined three different ways to obtain a value for your home whether it be a quick internet search or a professional to steer you in the right direction.

How to Calculate Home Value

1. Ask A Real Estate Agent for A CMA

Real estate agents analyze comparable homes using a comparative market analysis (CMA) to estimate the value of your home. A CMA is not as detailed as a professional appraisal but is used mainly as an evaluation of the home and the current market to provide an estimate on value, used mainly for listing purposes. If you are interested in obtaining a CMA for your property you can fill out a short form on our website to start the process

2. Hire an Appraiser

Before a lender approves a mortgage they will require a home appraisal performed by a professional appraiser. Some of the things an appraiser will evaluate:

• Market: the region, city, and neighborhood in which a home is located.
• Property: Characteristics of the house. This can include the land it sits on, any improvements made, or special features.
• Comparable Properties: Recent sales, current listings, vacancies, depreciation, cost, and other similar factors for houses in the same market.

They combine all this information to create a final opinion for the value of a home and deliver an official report.

3. Use Online Valuation Tools

A quick internet search of “How much is my house worth?” will provide you with countless home value estimators that can give you a rough idea of your home’s value. These tools use algorithms and public records to determine comparable properties that provide an estimate for your home’s value.

The downside to using an online valuation tool is that these tools do not consider any renovations/modifications made to the property or the surrounding community, so they are not always entirely accurate.

We recommend consulting a professional real estate agent that has a better understanding of homes in general, the neighborhoods in your area, and access to additional resources such as the multiple listing service (MLS).

However you decide to value your home, whether you’re a long-time owner or a new homebuyer, having an understanding of your home’s worth is a smart financial move. For most people your home is your largest investment so keeping track of its value makes sense.

Contact us today with any questions you may have about your home and check out the blog for more information and advice on all things real estate! If you are interested in staying up to date with all things TTR subscribe to our newsletter today!