Technology has revolutionized the real estate industry and there are several great options available to homeowners that need to know how much their home is worth.
Understanding home value is especially critical for sellers who are tasked with establishing a price that will generate sufficient demand to sell their home quickly. Knowing your home’s value will also help you budget for your next move.
If you’re scratching your head wondering “how much is my house worth,” you’re not alone. Check out these four options for determining home value before you decide to list your space.
#1) Ask a Realtor® for a Comparative Market Analysis
Once you are ready to sell your home, you can determine your potential listing price through a comparative market analysis or CMA. A CMA is a less-detailed appraisal for the value of your home. EffectiveAgents.com can introduce you to a real estate professional that will provide you with a CMA. CMA’s offer the most accurate and cost effective method to determine how much your home is worth.
To complete the CMA, your real estate agent will review several criteria including:
- The condition of your home
- Recent sale prices of similar homes
- The marketability of your home
- The market conditions and supply/demand variables
For a rough estimate, you can conduct your own CMA by checking sites with sales data but understand that comparable sales are typically very limited on most public-facing valuation portals. Therefore, it’s best to let a professional handle this for you. Connect with a Realtor® now to get a CMA
#2) Check out Online Home Value Tools
Most potential sellers want to answer the question “how much is my house worth,” without getting other people involved. They aren’t ready to call a real estate agent and might still be on the fence for even listing the property. If this is the case for you, consider using a few online tools to get an idea for what your home is worth.
The team at GoodFinancialCents curated a list of online tools that you can use to estimate your home value. These range from popular user-friendly sites to more advanced appraisal options where you can submit information and get estimates for your home’s value.
Most experts recommend keeping an eye on the housing market up to three years before you are ready to sell your house.
This allows you to look out for any trends that could hurt or help your home value. You may decide to list your home at a certain peak or hold off on listing it until the market improves through the information you learn. If you rent out a space and are considering selling it, you may want to wait until the market favors sellers. These tools help because they provide information but you don’t have to formally start the process of selling until you are actually ready. If your neighbor just sold his home for a mint, it may be time to act…sales comparable are typically only valid for 6 months!
#3) Analyze General Home Value Trends Through the FHFA
Another quick tool you can use to understand your home’s value is the Federal Housing Finance Agency’s House Price Calculator.
The HPC asks four things:
- The state you live in
- The time you bought your home
- The time you want to sell your home
- How much you bought it for
Then, through FHFA trends, the calculator will provide a very rough estimate for what your home is worth.
This is a rough estimate because it doesn’t take into consideration factors like improvements that you made to your home, its size, location and condition. This analysis completely ignores city or neighborhood trends as well. However, it is a rough jumping off point and a top realtor in your area can help you pin down a more accurate number.
#4) Seek Out a Formal Appraisal
If you want a hard and fast number for what your home is worth, then seek to find the appraised value of your home. The appraisal process typically occurs after you accept an offer on your home, but some people request one to understand their home’s true value.
Before an appraisal, you want to make sure that your home is in its best shape. A clean home without a list of necessary repairs will help you get a higher appraisal on your home, even if these steps only sway the needle by a few hundred dollars. Take a few steps to increase your home value to make sure it appeals to buyers.
Most real estate agents won’t recommend an appraisal unless you are officially ready to sell your home and have completed all of the steps to prepare it to go to market. Otherwise your appraisal might not truly reflect the value of the home — or at least what you think it’s worth.
How Much Is My House Worth? Get A Specific Answer
If you want a concrete number to answer the question “how much is my house worth,” then reach out to Effective Agents today.
Using our data-driven system, we can pair you with an agent who specializes in selling homes in your area, down to your specific property type and neighborhood. Your suggested agent will understand your home’s value and will be able to provide suggestions on the amount you should list it for.
Let us guide you through the home selling process so you have the best experience possible.