Realty Department

Your home’s value influences property taxes and it’s a key factor when you decide to sell. It’s also important to know because mortgage rates depend on a borrower’s credit history and debt-to-income ratio.

Online estimators are one quick way to get an estimate by plugging in your address. But beware, they can be inaccurate.

How to Find Your Home’s Value

If you’ve owned your home for any length of time, it’s likely that at some point in your life you’ve wondered “how much is my house worth?” This is a common question for homeowners who want to sell, refinance or borrow against their equity. However, determining your property’s value isn’t a simple task. There are a few different ways you can get an estimate including online valuation tools, hiring an appraiser or using a real estate agent to perform a CMA.

One of the easiest and most convenient ways to determine your home’s value is through an online valuation tool. These websites use public and user-submitted data to calculate a price estimate for your home. Some of the most popular online valuation tools include Zillow’s Zestimate and the Federal Housing Finance Agency’s house price index calculator.

These online valuation tools typically look at your property’s square footage, nearby comparable sales and local market trends to generate an estimate for your home’s value. While these estimates can be helpful, it’s important to remember that nobody is physically examining your home. In addition, these estimates typically don’t take into account any upgrades or improvements you may have made to your home.

A more accurate way to find your home’s value is through a Comparative Market Analysis (CMA). A CMA is conducted by a real estate professional who will analyze your property and compare it to similar homes in your area that have recently sold. These homes are known as “comps.” The real estate professional will look at the size, number of bedrooms and bathrooms, age and condition of the comps in relation to your home.

The real estate professional will then take into account the unique features of your home that set it apart from the comps in the area, such as your property’s location, view, outdoor space and amenities. The real estate professional will then use this information to generate an estimated home value for your property. In addition to performing a CMA, a real estate agent can also help you find a cash buyer for your home through their network of buyers.

Appraisal

A home appraisal is a professional evaluation of a property by a licensed real estate appraiser. This type of valuation provides the most accurate picture of a home’s value in a given market. An appraisal may be required when buying a home, refinancing a mortgage or calculating your equity. It is also the best option if you need to determine the value of your home for tax purposes.

When determining the value of your home, an appraiser looks at a variety of factors, including recent sale prices for homes similar to yours, local market conditions and trends in the area. The number of bedrooms and bathrooms, the amount of outdoor space and the overall condition of the home are also taken into account. A certified real estate appraiser uses all of this information to create a report that includes a detailed description of the property along with a fair market value estimate.

One of the most popular ways to find out how much your home is worth is to use an online home value estimator. These websites typically rely on the sales of comparable properties (commonly called comps) to calculate your home’s value. However, these online tools should be used with caution. The results can be inaccurate, especially if you’re using a tool from a company with a questionable reputation.

Another option for finding out your home’s value is to hire a real estate agent or lender to perform a CMA. This is typically the first step in the mortgage process when looking to buy a new home or re-finance an existing one. CMAs are often free of charge for buyers and sellers, but they can be more complicated than a BPO and may take longer to complete.

If you’re selling your home, it’s a good idea to accompany the appraiser during their walk-through. This gives you the chance to point out any improvements or upgrades that might help drive up your home’s value. It’s also a good idea to make sure your home is clean and clutter-free.

Be sure to check for signs of discrimination in mortgage lending, such as based on race, religion, sex, marital status, public assistance use or national origin. Mortgage discrimination is illegal and can be reported to the CFPB or HUD.

Comparative Market Analysis (CMA)

A real estate agent can prepare a comparative market analysis, or CMA, to give a homeowner an idea of what their home is worth in the current marketplace. A CMA compares the property with similar homes that have recently sold in the area. This process can also be used by a potential buyer to determine whether the property is being priced fairly.

Unlike an official appraisal, a CMA is not required for mortgages, but is often performed by agents in order to assist homeowners or buyers in making decisions about pricing and value. Likewise, it is an important tool for a seller who wants to get the most bang for their buck when listing their home for sale.

When preparing a CMA, real estate agents consider a variety of factors, such as the number and size of bedrooms and bathrooms, square footage, and features like a fireplace or garage. But it’s also critical to consider the property’s location, and the local and national housing markets.

For example, if you’re in a desirable neighborhood with good schools and easy highway access, this will be reflected in the home’s value compared to other properties in the same area. Conversely, if you’re in a less desirable neighborhood with high crime rates and limited highway access, these factors may negatively impact the home’s value.

It’s essential to choose accurate comparable properties for a CMA, and this is where a real estate agent’s knowledge of the market becomes crucial. They will look for properties that are as close to the subject property in terms of size, age, and features as possible.

Then they will compare the property’s listing price and recent sales prices of the comparables to create a list of the subject home’s fair market value. The most accurate CMAs will include a wide range of information about the homes in comparison, including photographs and detailed descriptions.

However, it’s important to note that a CMA is not an official appraisal and should be used as a guide only. An official appraisal should always be conducted by a licensed appraiser. In some cases, the lender may require an official appraisal before approving a loan for a home purchase. Even cash buyers might want to consider having an official appraisal done, as it would help them avoid overpaying for a home.

Mortgage Rates

A home’s value can be influenced by a variety of factors. It can also be difficult to predict how home prices will change in the future, especially since real estate markets are local and hyperlocal. Nevertheless, knowing how much your house is worth can help you make informed decisions when it comes to buying, selling or refinancing your mortgage. It can also be useful when it comes to determining your home insurance premium or property taxes.

In short, your house is worth what a willing buyer will pay for it in your market at a given time. While there are many ways to determine your home’s value, the most reliable way is to get a professional appraisal from a licensed appraiser. An appraiser will use a variety of methods to arrive at an estimate of your home’s value, including comparing your home to similar homes in the area, market conditions and comparable sales data.

An appraiser’s valuation of your home will be used by a lender during the underwriting process for a mortgage and to determine how much you can borrow against the equity in your home. You can also use your appraiser’s assessment to set an asking price for your home when you are ready to sell.

Online valuation tools such as HomeLight and Zillow are also commonly used by homeowners to calculate their home’s value. These tools comb through public records, user-submitted information, property listings and sales, and run them through an algorithm to generate a home value estimate. However, these tools are only as accurate as the data they are analyzing and should be viewed as a starting point.

Mortgage rates are another important factor in determining how much your home is worth. Higher interest rates typically lead to lower home values, while lower rates increase home values. If you’re thinking of buying a new home, it’s best to do so when interest rates are low. That way, you’ll be able to lock in a low rate and enjoy lower monthly payments. But be sure to keep in mind that the actual annual percentage rate (APR) that you’ll get on your mortgage may differ from the advertised rates.