Do you sometimes find yourself questioning your property estimate worth? Well, the answer is simple. The worth of your property can easily be determined by the amount someone is willing to pay for it. The value of your property often varies from time to time depending on the current market situation. If you are planning to sell your house anytime soon or are just wondering how much it might be worth, here is an easy guide for you to figure that out.
1- Using Online Tools
Online tools can be extremely helpful for your property estimate. You can do a simple Google search like ‘’what is the current value of my house?’’ and you will be directed to dozens of home value estimator websites. You can put in your address, and let the technology do its magic. These tools can predict the current value of your house taking multiple factors into account such as recent sales of houses similar to yours and listing prices in the adjacent areas.
2- Comparative Market Analysis
When you are willing to go further into the whole research, you have an option of getting in touch with a local real estate agent and ask them to provide a Comparative Market Analysis. A CMA can be helpful for you to assess the value of your house much accurately as they use advanced Automated Valuation Models. These AVMs are a step up from the regular websites as they use a confidence score. A confidence score of 90% indicates that the estimate is in the range of 10% of the current market value.
3- FHFA House Price Index Calculator
If you are still not satisfied with the results produced by AVMs, here is another substitute for you. This is a more official and authentic means of finding your property’s worth. The Federal Housing Financing Agency can deliver more scientific data through their House Price Index Calculator. This tool uses the ‘’repeat sales method’ that has mortgage accounts and data dating back to the 70s. Using this substantial data, FHFA tracks change in the value of a property from one sale to the next. Then this information is used to estimate the fluctuations in value.
4- Professional Appraiser
To get a mortgage approval, lenders first require a home approval. You can hire an appraiser to figure out your property estimate value. The job of an appraiser to give you a value for your house depending on your needs. Appraisers can also evaluate these things:
- Locality such as the city and neighborhood where the property is situated
- The property, which includes all the characteristics of the house and details of the land
- Comparable properties like sales, listings, costs, and all the other requirements for similar properties in the same market.
All of this information, when combined, can give a much clear idea of a property estimate.
5- Evaluate Comparable Properties
Appraisals and Automated Valuation Models both rely on recent sales of similar properties. The majority of the population considers this a very comparable evaluation while figuring out their property estimate. You need to be very critical when comparing two properties. Don’t consider every next sold property comparable. It must have a lot of similarities with your property to be comparable enough. The process is quite simple.
Surf on websites where recent listings are displayed. Find out recent sales of properties similar to yours. If you cannot find enough sales, you can still look at pricing. But remember that the pricing is not always realistic. Sellers tend to keep their prices a little high to leave some room for negotiation.
This was your guide to find out your property estimate. Involving a professional can make your job a lot easier. They move in the same and have contacts in all parts of the city, which give them a hands-on idea about the current market situation.