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Whether you’re thinking of buying, selling, or refinancing — or you’re just curious — you might want to know how to determine a house’s value. Fortunately, there are several ways to find out how much a house is worth, and you might get different results from each one. Here are some options for finding the value of a home:
How to find the value of your homeTo determine your home’s value, try one or more of these methods. 1. Online home value calculatorsOnline home value calculators use automated valuation models, or AVMs, to estimate how much your home is worth. These estimates are based on a wide range of property and local market data, including your home’s square footage, number of bedrooms and bathrooms, recent comparable sales, local market trends, and more. Online valuation tools don’t account for unique features of your home that might increase or decrease its value, such as how old your roof is or when you last remodeled your kitchen. For that, you’ll need a professional appraisal. Knowing the estimated value of your own home helps you price your home for sale, as a precursor to an official home appraisal. Understanding your home’s worth allows you to estimate the proceeds of a future home sale, so you can get a better estimate your budget for your next home. And, if you’re shopping, it’s also useful to check the value of homes in the area to ensure your offer is competitive. A Zestimate is Zillow’s estimated market value for a home, computed using a proprietary formula including public and user-submitted data, such as details about a home (bedrooms, bathrooms, home age, etc.), location, property tax assessment information and sales histories of the subject home as well as other homes that have recently sold in the area. Updating your home details can help make your Zestimate more accurate. A Zestimate is not an official appraisal, but is a starting point to estimate your home value. Home values increase when buyer demand increases. Making home improvements can also increase the value of your house. Updating your home’s exterior, including the roof, siding, doors or deck often increase the true value of your home, which is what buyers are willing to pay for the property. Depending on the extent of the change, addition or renovation, and the ability of Zillow to identify it, some changes may be reflected in the Zestimate while others may not. You can help by updating your home facts when changes have happened. Search your home address on Zillow, claim the property as your home and update your home facts to reflect recent improvements. Knowing how to calculate your home’s value makes is essential for selling your property successfully. Our guide will help you to determine how much your house is worth. Curious what your home is worth? Get an offer in minutes, sell in a matter of days. Find outTable of contents
If you’re thinking of selling your home, then you’ve probably wondered How much can I sell my home for? One of the challenges of determining your home’s value is that “value” is subjective; one buyer may be willing to pay more than another. So how do you find that sweet spot, meaning a listing price that will attract buyers and help you reach your goals? The more you know about the factors that influence value, the easier it is to establish realistic expectations for listing and selling. Some of the most important factors include:
This guide breaks down everything you need to know about the most effective ways to determine the value of your home as you get ready to sell. 1. Start with online valuation toolsOnline home value calculators use the information you provide about your home, along with information gleaned from public records, to calculate an estimated value of the property. They’re a simple and convenient way to get a ballpark idea of what your home might be worth. For example, PennyMac’s value estimator takes the address of your home and returns an estimate of the overall value, price per square foot, property details, sales history, and value history. If you want more than just an estimate, request an offer from us at any time; it’s free and there’s no obligation to accept. Learn more about how we calculate the value of your home. Example of an Opendoor offer. Pros of online valuation tools:
Cons of online valuation tools:
2. Work with a realtorRealtors have their own techniques for determining a home’s value, and it can be helpful to get a second opinion to go along with the estimates from an online valuation tool. The process many realtors use to estimate a home’s value is called a Comparative Market Analysis (CMA).
A CMA includes information about comparable homes (also known as “comps”) in your area. According to Nolo, a good CMA can tell you what homes similar to yours are selling for, how long it’s taking them to sell, and what homes sold for compared to their original list price. When working up a CMA, realtors typically look for recently sold homes that are similar in:
In preparing a CMA, realtors often look at data from the local Multiple Listing Service (MLS). It’s a database of properties in a given area that are listed for sale or have a sale pending. In your quest to determine your home’s value, another tool you might come across is the Broker Price Opinion (BPO). In some states, you need a license to provide one, whereas you don’t for a CMA. The Appraisal Institute maintains information on state BPO laws. BPOs are often briefer than a CMA and are more often used for short sale or foreclosure situations instead of for regular home sales. They are also slightly more likely to cost money vs. being free. Keep in mind that a CMA or a BPO can still miss the mark on your home’s value because they may not take into account every feature of the property that affects value. That’s something you can address by following the next step in this guide. 3. Hire a professional appraiserWhen someone’s buying a home, the bank requires them to get an appraisal at some point before underwriting of the loan can be completed. As the seller, you’re not required to get an appraisal but it may be a good idea if you don’t want there to be any second-guessing about your home’s value when you’re ready to list. It’s the appraiser’s job to provide an impartial, thoroughly researched estimate of a home’s value. They do that by visiting the property and reviewing recently sold or pending sale comps. → Want to have the certainty of receiving a competitive offer and move on your own timeline? Learn how we make selling your home easier. Appraisers may use Fannie Mae’s Uniform Residential Appraisal Report as a guide for conducting an appraisal. This report is basically a checklist of things appraisers should look for, such as:
Using this report as a guideline, an appraiser would also consider the sales history of the home and the approximate replacement cost to rebuild the home. An appraisal shouldn’t be confused with the home inspection, which focuses on whether the property is structurally sound enough for a sale to be completed. Cost of hiring a real estate appraiser If you’re thinking of hiring an appraiser to gauge your home’s value, you’ll want to first make sure the person you choose meets all the requirements of the Appraisal Qualifications Board (AQB). They should also have experience appraising your type of property, ideally in your local market. It may also be helpful to get multiple quotes. How much you’ll pay for an appraiser depends on:
Generally, the bigger your home and the more things an appraiser has to examine to determine the value, the higher the cost of the appraisal. According to HomeAdvisor, you may pay anywhere from $250 to $450 for a home appraisal, with $332 representing the national average. Fixr puts the average cost at $300 to $400, while Thumbtack lists the average appraisal price at $350 to $380. Bottom line, you’ll likely pay a few hundred dollars to have a home appraisal carried out. So is it worth it to spring for an appraisal as you’re preparing your home to sell? Pros of getting a seller appraisal
Cons of getting a seller appraisal
Getting an appraisal on top of a CMA or BPO can give you a well-rounded picture of your home’s value. If the appraisal aligns closely with the CMA or BPO, that can help you be more confident in choosing a list price, but keep in mind, there are no guarantees you can sell your home based on these measures. 4. Analyze your own compsYou might not have access to the MLS, but you can still use some of the same factors to compare your house to similar ones selling in your area, including:
You do, however, have to remember to account for differences between your home and comps that could affect value. For example, a home in your neighborhood that recently sold might be very like yours but it has a pool, where your home doesn’t. You’d then have to determine the value of the pool and subtract that from the estimated value you came up with for your home, based on the comp. Online comparison toolsThere are lots of tools and websites you can use to evaluate your own comps. Here are some of the ones you might want to consider as you put together your list:
Remember you’ll need to come up with at least three homes that are similar to yours.
Any fewer than that and you may not be able to come up with a realistic range for your home’s listing price. Finally, when you’ve come up with estimates based on comps, be sure to check the trends in your local market. Are home prices trending up or down? How many homes are on the market and what’s the average time spent on the market? What’s the foreclosure rate like in your area? Have property taxes increased or decreased in the last few years? All of these questions can yield clues to the temperature of the market so you can price your home accordingly. Understanding home valueThere are three types of home value you need to be familiar with as a seller:
Key takeawaysThe prospect of closing the deal on a sale becomes much less intimidating when you’re heading to market with a carefully researched valuation in your back pocket. Remember, the goal is to sell your home at the right time and the right price according to your needs. Rebecca Lake This article is meant for informational purposes only and is not intended to be construed as financial, tax, legal, real estate, insurance, or investment advice. Opendoor always encourages you to reach out to an advisor regarding your own situation. Unlock an offer on your home
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Download App © 2022 Opendoor Offer eligibility and purchase price vary. Featured customers may have been compensated for their time. Their opinions and views are solely their own. Learn more about the Opendoor Brokerages Opendoor Labs Inc. is working with Accessible360 to enhance the accessibility of our websites and mobile applications. We view accessibility as a continually ongoing effort. Please contact us at [email protected] with any feedback or suggestions. What is the most accurate home value estimator?The most accurate home value estimator is Redfin as it uses historical pricing data and also considers real-time demand and market trends. Redfin estimates are more accurate than Zillow and the interface is intuitive making it easy to find exactly what you're looking for.
How do you calculate the value of a property?How to calculate the market value of a property?. Assess the current property market climate.. Look at similar properties that have recently sold.. Consider property price predictions.. Research plans for the local area.. Use online property price calculators.. |