The value of your home represents the amount that potential buyers are willing to pay during a purchase. This amount can vary significantly depending upon what a buyer feels is valuable. Some buyers are looking for a house near a quality school. Others want a house with lots of usable space.
House values also tend to fluctuate with the current market. This means that a house may be valued at a much higher or lower rate than it was when it was first purchased. Understanding what a house is worth makes it easier to come up with a price that is agreeable to buyers. This information also helps you to sell your house for what you know it is worth.
Determining the value of a residential property involves the consideration of several factors. These include the value of other houses in the surrounding area. The value is also affected by the size of the house, its age and any special features that are included.
Try an Online Value Calculation Tool
One of the fastest ways to get a base estimate on the value of a house is to try out one of the many free online tools that are available. These typically ask for some basic information that includes your house’s age, square footage and general condition. It then uses other information from public sources to generate a value.
Keep in mind that the fastest route to getting an estimate is not always the most accurate. The values generated by different online tools have noticeable fluctuations. These tools can still give you a fairly close baseline to what the house may be worth.
Look at the Assessed Value
Local municipalities frequently assess properties in the area for tax purposes. This information is available online, or you might have a recent statement from your annual property taxes that lists this value. This is still just a ballpark figure because it does not necessarily take into account features that are located inside your home.
Get a Comparative Market Analysis
A real estate agent can help to create a more accurate value for a house. They use their expertise on the market along with information about the house to come up with the right number.
This analysis relies heavily upon data about the recent sales of comparable houses that are located near your home. Using the most recent home sales in your area helps to achieve the most accurate estimate possible. The agent can also include their knowledge about the general neighborhood and features of your house to complete the analysis.
Consider Amenities and General Appeal
There are some things that just can’t be put into an online calculator or marked off of a checklist. For instance, a home that is located in a well-kept neighborhood may have a higher value than one that sits next to a junk lot. Buyers also notice the traffic in the area and the appearance of local parks. These may generate subtle changes in the value, but they are important to include in the calculations.
The best way to figure out what your house is worth is to use several sources. This makes it possible to come up with a final value that takes into account all of the factors. Combining your research with a professional analysis helps you feel confident that your house is priced just right for what it has to offer and the current market.