Your home value is based on what buyers in the market will pay for your home, but every buyer is different. For example, one family might weigh location factors like schools and jobs over the size and condition of the home. Here are some ways to understand your home’s value.
Research the Comps
To determine the value of a house, an appraiser will typically look at three comparable sales, or comps. Appraisers have access to the Multiple Listing Service, known as the MLS, which is a database of all the properties in a given area that have been listed “for sale,” are in the process of being sold (pending,) or have already sold. Obviously every home is different, with features that make the home more or less desirable.
Look Online
Use a property value estimator to get a free estimated market value of your home or a home you are interested in. The online tool calculates the best-estimated home valuation using the millions of home records in the database. Thinking of doing improvements? Add your proposed projects and estimate how your home’s value will increase. Using Google maps, pinpoint the exact location of your home or an area you have your eyes set on.
Know the State of the Market
A good housing market means home sales and home prices tend to rise together, more or less. A good housing market itself features rises in average home sale prices along with increases in total sales numbers. Home sellers in good housing markets also tend to sell their homes at or very near their listing prices, too. Additionally, good housing markets often have tight housing inventories, with buyers competing for what homes are available. The opposite is for a poor housing market. Bad housing markets often tend to have a large number of houses for sale and few buyers for them.
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Compare Similar Homes
For this process to work, you have to identify the homes most similar to yours in location, size, structure, and more. Some key factors to consider when selecting properties for comparison purposes, the number of bedrooms (exact match is best, but you shouldn’t go up or down more than one bedroom), number of bathrooms (the same logic for number of bedrooms applies to bathrooms), size (square footage, more on that below), year built, updates and condition. Take note of the surrounding areas of the house. For example, even if your house is exactly the same as every other house around, if it backs up to a waste facility, it’ll sell for less than the others. Look at everything that surrounds your house and houses similar to yours.
15 comments
Buying a home is a very big decision. One has to educate themselves before making a a final deal. Understanding the demographics, prices in other areas area, with same floor plan, tax rates is very important. Here, school palys a very big role in home buying as one particular area will be zoned to a particular school district and schools that comes within that area so that factor is added to the research.
It was a useful post for all the new home buyers
This is a completely different field, i have never even though about what can be my home value.
Wow once i have money to buy a house im surely going to take into account its value too. Good tips Tina!
You have covered almost all the relevant points needed to be kept in mind while purchasing a home. These days there are so many sites that can help in this regard especially in comparing the market price etc.
Buying a good home in your budget is certainly not easy. Glad you shared some tips and pointers to keep in mind before choosing a home
I recently took a new house now this is a helpful post for me ty for sharing.
Lot of factors come into play while buying a home and location is definitely a big part of it. Helpful pointers here.
Helpful pointers chalked out here. Buying homes is not easy we do have to make sure it fits all the points before making a deal.
Valuing a home is a great task, thanks to multiple sites that has many factors attached to it. Your pointers listed here are helpful to come to conclusion.
Such vital tips Tina, indeed worth pondering when investing in property. Will bear them in mind
Indeed home value is good way to find the right value of homes and gives fair idea. This is very helpful approach to do it rightly
Thanks for this valuable information. It’s easier said than done when it comes to estimating the reselling value of any property. Those are some great pointers.
Your tips are so vital . I was planning for buying a new house and these points are really helpful for me ..
These are some useful tips. We also followed these while looking out for our new house.
I’ve never looked at my home in this way, this surely is a great way to value my house.