If you’re a homeowner, you’ve probably heard the old saying, “Location, location, location”. Many people believe that the value of their home is based on the location where they live, where they work, and/or where they buy their groceries. But, is that really the case? We’ve created a quick guide on how to find out how much your home is worth.
What Affects the Value of my House?
As property expert Quintessentially Estates explains, targeting a good location for your house may be a good idea, but it’s not the only one. A lot of other factors contribute to the valuation of your house. They include;
- Real estate comps. These are comparable characteristics in the housing market you are looking to buy in or sell at. They are used by real estate agents to determine your home value. They include; 1) feature similarity, similar homes are more comparable, 2) location and distance, comparable homes should be in the same subdivision, and 3) recency of the sale.
- Property size and functionality. A common rule of thumb for most home buyers is, the bigger the better. However, the more the usable space, i.e., bathrooms, bedrooms, etc. positively impacts the valuation of your home.
- Age, maintenance, and upgrades. A new house is worth more than an old house. However, a well-maintained house that is constantly upgraded, despite its age, will give you leverage and increase the value of your property.
- Economic factors, such as inflation, unemployment, interest rates, etc. affect the purchasing power of potential buyers, and consequently, the supply and demand of property in the housing market, which may lower or increase the value of your home.
How Do I Estimate the Value of My House?
The first, easiest, and cheapest way of estimating the value of your house is by using a free online valuation tool. Online valuation tools give you a guide into your home’s market value, and consequently, the asking price for your property. Online property value calculators calculate the estimated value of your property using metrics and algorithms.
Online valuation tools are also a good reference point for potential buyers because they are able to check the selling prices of similar properties in the local area of interest and compare those prices to current prices in the property market.
What Should I Do After My Online House Valuation?
A free online valuation of your house is limited and prone to error, therefore, it should not be the only tool in your home valuation toolbox. This is because there are many valuation sites and each site uses unique and different metrics to value your home. Due to this, some sites are more accurate and reliable than others. An online house valuation gives you a bigger picture of the worth of your property, but to get accurate information on your home value, you should;
- Engage a real estate agent. A local estate agent carries out comparative market analysis to determine the value of your home based on your current real estate market. They also give you property price advice, such as, house upgrades, repairs, curb appeal, among others that can fetch you more money for your house.
- Hire a professional appraiser to give you the most accurate value for your home. Hiring a professional appraiser is a good idea if you want to get a mortgage for your house or you’re preparing to sell.
- Check your county auditor’s website to get the assessed value of your house from a tax perspective.
- Check real estate comps for your home online. Checking prices of similar houses that were sold recently in your neighborhood, helps you determine the amount of money to list your home.
- Check how much your house is worth via the Land Registry. The Land Registry keeps a record of land, houses, and properties registered, for example in Northern Ireland, to confirm if the land and property is registered, and how much it is worth.
So How Much is Your Home Worth?
The value of your home is not just an asking price, so many factors go into determining the worth of your property as mentioned in this article. Moreover, there are also various ways that you can determine how much your home is worth without breaking the bank.