A home is an imperishable asset that continues to increase in value. Real estate is one of the most solid investments that you can have. Buying or selling a home can be a huge decision, and there is always the nagging fear that you might not make the best deal. Knowing that you might sell your house for less than it is worth can give you sleepless nights. The same is true when you think you could be buying a house for more than it is worth.
The truth is that most people do not know what their homes are worth. This can cause problems when it is time to sell. Fortunately, it is not too difficult to find out the value of your home. Different resources can help.
Modern technology has made the process of searching for information very convenient. You can access online tools that will help you find out how much your home is worth. The home value estimators are programmed with the valuation models that real estate agents and lenders use.
The online tools use public records such as title deeds, tax assessment reports, and property transfers to predict the value. Using mathematical modeling, your description, and recent sales, you can get an almost exact value of your home.
To find out more about the value of your home, you can talk to a local estate agent. You can get a broker price opinion (BPO) from someone who has experience in the market. The BPO may not be as detailed as a professional appraisal but it offers the agent’s evaluation in the current market. You can also get a competitive market analysis (CMA) that provides recent sales data. It shows the value of similar properties in your location as well as an agent estimated value.
You can get a quick estimate of your house value using a house price index calculator. Provided by the Federal Housing Financing Agency (FHFA), the tool uses scientific methods to determine property values. The FHFA tracks property value changes with each sale. The calculator fluctuates to reflect the current market trends.
A good way to determine the value of your home is by looking at comparable homes in your location. According to statistics, most buyers consider the latest sales values of similar properties when buying or selling homes. Both AVMs and appraisals also depend on the value of comparable properties in the area. This method is popular due to its simplicity.
Before you can get approval for a mortgage, you will require a home appraisal value. You can hire a professional appraiser to find out the value. The appraiser will evaluate the market price of the home and other similar sales listings considering any improvements made.
Knowing the value of the property or home is very important. It can help you determine how much to ask for your home and what you can afford. When you know the value of your home, you have greater control over issues like property taxes. The information comes in handy during refinancing and for insurance.
To learn more about how to determine the value of a home and why it is so important, call Pacific Sotheby’s International Realty Affiliates LLC at our office in Indian Wells, California at 714-323-1175, or schedule an appointment today.