How to Estimate the Property Value of Your House
Want to sell your house? At what price? Are you sure you are quoting the right price your house deserves? Is it under-priced? Is it over-priced?
No. We are not trying to scare you with questions. These are pertinent questions you must ask yourself if you are thinking of getting the ‘best’ price.
Having an accurate estimate of your property value is THE most essential part of the entire renting process. If your estimation, it’s too low, you will lose out on potential gains. If it is too high, it will scare off potential buyers. Having an accurate estimate of your property value is THE most essential part of the entire renting process. If your estimation, it’s too low, you will lose out on potential gains. If it is too high, it will scare off potential buyers.
We are here to help you through!
Here are some ways to estimate the value of your house:
⦁ Evaluate comparable houses
One of the easiest ways to estimate property value is to rely on the ‘neighborhood camps’. This method is mostly used by agents and appraisers where they select comparable houses in the neighborhood. The selection criteria usually include features such as year of built, number of stories, area, number of bedrooms/bathrooms, etc. Other important variables such as location, HOA rules, proximity to most visited areas are also taken into consideration.
Once you have chosen comparable houses, the next step is to adjust for the differences between those and your house. Adding or subtracting values according to the presence or absence of features – you will get your lowest and highest camps. Your estimated home value will be somewhere in between.
⦁ Use online estimating tools
Several quality AVMs (Automated Valuation Models) are available these days. These tools predict the value of the property based on recent sales and listing prices in the locality you are selling. They also take into account public records such as tax assessments, ownership deeds, property transfers, and so on. Using mathematical models, these tools can provide an accurate and realistic estimate of your house.
⦁ Hire an appraiser
You can hire the services of a professional appraiser any time to estimate your home value, as per your specific needs. Expert appraisers can evaluate
⦁ Important features of the house
⦁ Value of the land the house sits on
⦁ Improvements/repairs required
⦁ The neighborhood, city or region the house is located
⦁ Comparable properties in the same market -in terms of listings, sales, cost, depreciation, vacancies
They combine all such information to create an ‘appraised value’. It will give you a precise idea of the ‘net worth’ of your house.
Do a Comparative Market Analysis (CMA)
Though not as comprehensive as an appraisal, a CMA gives an evaluation by an agent, at little or no cost. Experienced agents conduct a thorough evaluation of comparable houses that are sold in the concerned locality over the last year or so. On the basis of this, they can advise you on a fair and attainable asking price.
The above must have given you a clear picture of how to estimate the value of your house. Then, have the right ‘price tag’ on your house and woo as many potential buyers you can. Get the best price your house deserves!