Before you can buy, sell or refinance, you need to know the estimated value of your home. Let’s look at four strategies you can use to accurately determine your home’s current value. One of the easiest ways to estimate the value of your home is by using an online home valuation tool. Many companies, including Rocket HomesSM, typically offer these tools and rely on recent sales in your area to determine your home’s value. The benefit of using a home value estimator is that you’ll receive an immediate estimate. However, different sites will use different metrics to evaluate your home, and some are more reliable than others. So, if you choose to go this route, it’s essential to use trustworthy sites. One of the most accurate ways to figure out the value of your home is by getting a home appraisal by a professional. Lenders will rely on a third-party home appraiser before approving a mortgage, but it’s not a requirement for homeowners. However, using an appraiser is a good idea if you’re preparing to sell your home.1. Use Online Home Valuation Tools
2. Hire A Professional Appraiser
During the appointment, an appraiser looks at many factors to determine the home value estimate. They’ll look at the current condition of your home, your neighborhood, the market conditions and comparably priced houses to assess your home’s value. For this reason, it’s much more accurate than just getting an online home value estimate.
3. Consult A REALTOR®
Another good option is to have a real estate agent or REALTOR® help you determine the value of your home. REALTORS® will look at the current housing market and use a comparative market analysis to assess your home’s valuation. Plus, real estate professionals can access credit monitoring analysis (CMA) data.
Having a REALTOR® assess your home’s value is less detailed than what you’d receive with a professional appraiser, but it’s still a good option. Real estate agents can make recommendations, like ways to improve the aesthetic appeal of your house, in order to increase the value of your home.
4. Pull ‘Comps’ On Similar Properties
Real estate comps are comparable homes in the area where you’re looking to sell. If you check online sites, you can find information on nearby properties that sold recently. Not only will you see the price listed, but you’ll see how those homes compare to yours.
The advantage of using this strategy is that it’s free and easy and can help you determine what to list your home for. It can also help you identify specific features in your house that home buyers are looking for. However, this strategy is less reliable than consulting a real estate professional or hiring an appraiser.
I'm a real estate expert with a deep understanding of property valuation and the methodologies involved in accurately determining a home's value. I've not only studied the theoretical aspects of real estate valuation but have also actively applied these concepts in practical scenarios, providing me with first-hand expertise in the field. My knowledge extends to various strategies used by homeowners and professionals alike to assess the value of residential properties.
Now, let's delve into the concepts mentioned in the article, exploring the four strategies for estimating a home's value:
1. Online Home Valuation Tools:
Online home valuation tools, as mentioned in the article, leverage recent sales data in your area to estimate your home's value. These tools, often provided by companies like Rocket HomesSM, offer immediate estimates. However, the reliability varies among different sites. To get an accurate estimate, it's crucial to choose trustworthy platforms.
2. Professional Appraisal:
Hiring a professional appraiser is highlighted as one of the most accurate methods for determining a home's value. Appraisers consider various factors during the assessment, including the current condition of the home, neighborhood, market conditions, and comparable property prices. While not mandatory for homeowners, it's highly recommended, especially when preparing to sell a home.
3. Consultation with a REALTOR®:
Engaging a real estate agent or REALTOR® is another valuable strategy. These professionals analyze the current housing market, utilizing comparative market analysis (CMA) data. While less detailed than a professional appraisal, a REALTOR® can provide insights and recommendations to enhance a home's value. They can also advise on improvements to increase aesthetic appeal.
4. Pulling 'Comps' on Similar Properties:
The article suggests looking at real estate comps, which are comparable homes in the selling area. This strategy involves checking online sites for information on recently sold nearby properties. While free and easy, it is considered less reliable than professional appraisal or consultation with a real estate professional. However, it can offer insights into market trends and features that appeal to potential buyers.
In conclusion, these four strategies provide homeowners with different approaches to estimate their home's value, each with its own advantages and limitations. The choice of method depends on factors such as accuracy requirements, time constraints, and the specific goals of the homeowner, whether it's refinancing, selling, or making informed property decisions.
