The real estate industry is a dicey place to be. To determine one’s home value, one must check in from more than one source at least. It is important to do so if you are looking to buy/sell/rent at a reasonable price. In 2021, the value of real estate has gone through the roof. Therefore, if you are in the right place and at the right time, selling one house is enough to make you rich. Regardless of whether or not you want to sell or rent your place to someone, the interest rate and final amount are satisfactory.
But what if you go blindly and make a deal that is just break-even? Then selling your house or buying one barely stands any meaning. We know it can be tricky and only a rare handful of agents want the best for you. But you have nothing to worry about. We have gathered the necessary information with thorough research so that you don’t have to waste time looking for them.
4 Ways To Determine Home Value
Get ready to sell your home at the best price possible. The factors that contribute to the financial value you will get from selling are:
- Age of the house
- Economy and interest rate of the area
- Comparison with similar kinds of homes in the same area or city
- Repair and renovation did through the years
While some of these factors may give you a high market value, things like repair and the age of the house may not aid in the process. As a result, the actual value of your house can increase and decrease in many aspects and the time of selling.
1# Use online valuation tools.
First and foremost, to get a good idea of the possible market value of your house, you can try the online valuation tools. Many trustworthy online websites can help you get a rough idea. Most of these tools are easy to use. Fill in details about your house like the date of its build, the space per square foot, neighbourhood, nearby amenities and markets, repairs, any other things you want to mention – all of it.
- Online valuation tools are free of charge.
- Regular updates help in updating your selling price from time to time.
- Needless information about the house with quick results.
- Since different online tools give different results, it can be confusing and misleading to follow them.
- May skip essential aspects about your home and only gives an estimate.
2# Get A Realtor On Board
A realtor or an estate agent can come in if your online tool outputs are unsatisfactory or you need a second opinion from a professional. For example, a realtor will see for factors like:
- Size of your house
- Type of house
- No. of floors
By going through these in detail, they use the technique of Comparative Market Analysis or CMA to determine the value of your house. Then, they compare it with houses on the Multiple Listing Service, where houses with the same factors are on sale.
Must Read: 8 Signs you’re Ready To Buy a House
3# Take Help From An Appraiser
Usually, the bank from where you are managing the business will want you to get an accurate value of your house. This may need to be an exact value and not just an estimate. In such cases, you can take the help of an appraiser. Your appraiser will be objective in his view and will value your house or the house you will buy in the exact amount. Nothing more or less. They take into account the following:
- Location of the house
- Safety from natural disasters like earthquakes, floods, and cyclones
- The exact date of the build
Read to know: What Type Of Property Is A Good Investment?
4# Use Your Analysis
If you don’t feel comfortable hiring a realtor or paying an appraiser, use the following to gauge the value of your house.
- Sale history of houses of a similar kind
- The selling price with the actual price of the house
- Neighbourhood and location
- Features and amenities
Why Is It Important To Determine Your Home Value?
It is essential to know the value of your house for many reasons. Firstly, knowing the kind of mortgage you have if the time comes in. Secondly, selling your house or refinancing is a good idea for selling it at the current market rate.