Knowing the value of your house is very important especially if you planning to sell your house. You can be able to accurately make an informed decision in regards to the price when placing it on the market. Performing a property valuation will not only give you an accurate value of the property it will also enable you to sell our house if interested at the best price possible. Other reasons why you might want to know the value of your house is that it helps you evaluate what you can afford, determine if the listing is priced correctly. Home equity lines of credit, annual property taxes, insurance premiums, and refinances are also home value-based, so having an idea of your house value will gain you control over these processes. The next question will then be; how can I know how much my house is worth? Don’t worry, down below is a list of ways you can determine How much is my house worth or you can also request our expert advice to calculate your home worth using this LINKOnline valuation tools
This is the easiest and quickest way of determining your home’s value. You just search ‘how worth is my house?’ and multiple online tools will pop up to help you solve that questions. Most of them use public records such as property transfer, tax assessments, and deeds of ownership with some mathematical modeling to try to predict the real value of your house based on recent sales and listing in that specific area. There are a variety of these automated valuation models that are used differently by different real estate professionals and lenders. A professional-grade automated valuation model with confidence scores linked to accuracy is a step up from the real estate sites, Rasmussen says.Seek the services of a professional appraiser
Another easy way of evaluating the value of your house is to hire a professional appraiser to estimate it. Most lenders will need you to do a home appraisal before they can trust you with a mortgage. This is the most common way used by many homeowners because it's quick and effective as compared to the other techniques. Some of the things appraisers look at are the market i.e. the neighborhood or city the home is situated, comparable properties such as the depreciation, sales, cost, vacancies, listings, etc. factors for similar houses in the same market. The property, that is, the characteristics of the house, including improvements and the land it sits on. All this information builds up to creating a final opinion of value for the home and delivered in an official report.Comparative Market Analysis
Comparative Market Analysis is a real estate is a tool used to evaluate the value of a specific property by comparing the house to a similar one sold before. You can get a real estate agent to do a comparative market analysis for you but you can also perform one by following the guideline given below;
- Evaluate the neighbourhood; check the surroundings for social amenities such as schools, malls, and attractive features.
- Gather info about the said property; take notes on the size, age, structure, structure, layout, landscaping, etc. of the house.
- Select the comparable homes; find five houses that have very similar characteristics as the house in question and probably also in the same proximity to it. Compare the value of these five houses paying close attention to when the comparable property sold. The most recent the prices the better because of the fluctuation.
- Adjust the difference.
- Determine the sold price per square foot after adjustments
Federal Housing Financing Agency uses a more scientific method to get the pricing of a house as opposed to the common AVM (Automated Valuation Model). FHFA uses the ‘repeat sales method’ that is equipped with mortgage transactions that have been collected since the 1970s. This information is then used to calculate an estimated value of the house in a given market regardless of the fluctuation rates. Will Doerner, a Senior Economist in FHFA confirms that the HPI calculator is an easy way to see how much your house has appreciated over time. With regard to all these, the HPI calculator is not seasonally adjusted, or does it consider inflation. "If you have a conventional, conforming loan, the HPI calculator is an easy way to see how much your house may have appreciated over time," Doerner says.
In conclusion, we have to agree that knowing the value of your house is of immense importance, and nowadays there are several ways to find that out. Also don’t remember to check us out we can help guide you through this homeownership journey.