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 AnalysisOnce 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
#2) Check out Online Home Value ToolsMost 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 FHFAAnother 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