If you’re thinking about selling your home, the first question that will likely come to mind is, “What’s the value of my home?” Knowing how to calculate your home’s value can help you set a listing price that will attract buyers.
Keep in mind that value is subjective and influenced by a variety of factors. Among the factors that can impact your home’s value are the home’s size and age; location and local market conditions; comparable homes that have sold recently; current economic conditions, (including the interest rate environment); and renovations and repairs.
Here are effective ways to determine the value of your home as you prepare to sell:
Use online valuation tools
Online home value calculators use the information you provide about your home and information from public records to calculate an estimated value of your property. They provide a simple and convenient way to get a ballpark idea of your home’s value.
Such valuation tools are typically easy to use and come at no cost to you. Online home valuation tools include Zillow, Chase, PennyMac’s value estimator, Redfin, US News, realtor.com, RE/MAX and, ForSaleByOwner.com, among others.
Work with a local real estate agent
If you hire a local real estate agent, you can take advantage of all the market information he is privy to. You can, for instance, ask your local real estate agent to help you with a comparative market analysis. Although not as detailed as a professional appraisal, the CMA can provide you with the estimated value of your home, typically for listing purposes. Your real estate agent will likely provide the CMA at little or no cost to you.
Get your home professionally appraised
Sellers are not required to get an appraisal. However, hiring a professional appraiser may be a good idea as it takes the guesswork out of determining your home’s value when you’re ready to list.
Figures show that over a quarter (28%) of U.S. homeowners get their home professionally appraised to help determine its value before they list it on the market. Professional appraisers will use the information from property visits and comps to properly estimate your home’s value.
Use the FHFA HPI calculator
The Federal Housing Financing Agency’s house price index (HPI) calculator adopts the “repeat sales method.” It leverages mortgage transactions in the millions, gathered since the 1970s to track a house’s change in value from one sale to the next. This information is then used to reliably estimate how values fluctuate in a given market.
Evaluate comparable properties
Many U.S. homeowners use comparable properties (“comps”) to help estimate the value of their home. This involves comparing properties of a similar size, location, condition and upgrades.
If you’re thinking of selling your home and need assistance in determining its value, our team can help you. We pride ourselves in being real estate agents who understand the local area better than anyone else. Call us today at 262.629.4747 or send an email to ContactUs(at)EmmerRealEstate(dotted)com. Do take the time to check out our other blogs related to home valuation as well.