Knowing the Value of your Home
Posted: April 15, 2019 by Alan Tucker
Whether or not you’re looking to sell your current home, understanding its value is something that can only serve to help you! There are a number of ways to understand how much your home is worth, and you should familiarize yourself with as many of them as possible! First, you could make use of an online valuation tool—you may think that these tools would have a wide margin for error, but you’d be surprised at their accuracy! Second, you can reach out to a real estate agent and ask for a competitive market analysis (or CMA) on your home! Lastly, you can go the tried and true route of hiring a professional appraiser and let them determine the value of the home!
Use an Online Valuation Tool
There are countless tools and resources online that will give you an estimate of what your home is worth, and there are a number of factors that the valuation will look at to determine what your home is worth! These online valuations are becoming more and more common as the technology behind them continues to expand and improve. As a result, these types of valuations are typically quick and easy, and the most popular of them are offered by real estate apps like Zillow and Redfin. However, just consider that online valuations have to be a bit more general than other valuations, and thus the accuracy of the valuation is not always spot on!
Ask an Agent to Perform a CMA
A CMA (or competitive market analysis) is something that a real estate can perform that will ultimately determine the value of your home for listing purposes! The agent will look at a wide array of things, including the market in which your home resides and how your home compares with the surrounding homes of the area. In addition, the agent will be knowledgeable of what other homes in the area sold for and how said homes compare to yours. As such, you should understand that an agent that performs a CMA for you will want to be your listing agent, so don’t ask an agent to perform a CMA if you have no intention of using them! A CMA is more accurate than an online valuation tool, and an agent will most likely carry out the process for a small fee. However, a CMA is not as accurate as an appraisal of a professional appraiser!
Hire a Professional Appraiser
Professional appraisers are a staple of the real estate business—after all, an appraisal is required before any mortgage can be approved! A majority of home owners used professional appraisals to determine the value of their homes, and thus you can trust that the information and feedback that you receive will be useful! Professional appraisers will look at a wide array of factors to narrow down the value of your home, including: the overall market in which the home is located (the region, city, and neighborhood), characteristics of the property upon which the home sits, and comparable properties to your home! All of these factors allow an appraiser to give you an accurate understanding of what your home is worth! In addition, don’t be afraid to ask an appraiser suggestions for what they feel could increase the value of your home—after all, they’re expertise is in finding home value!