Even if you don’t plan to sell your home any time soon, I always recommend that my clients keep up-to-date on their home’s current value. Like any good investment, it’s important to monitor market trends and see exactly how well your investment is doing! Keep in mind, a home’s valuation may fluctuate depending on the current state of the market and economy. Don’t be too frightened if you happened to notice the value dipped a bit since 2-3 months ago when you last checked.
Generally speaking, real estate tends to gain value with each passing year (if all circumstances remain favorable) and an annual update on what your home may be worth is sufficient to keep you well-informed on the state of your investment. So what are some ways you can find out what your house is actually worth? There are many tools available out there, some less reliable than others. Here’s a list of options you can explore:
Online Valuation Estimates
Online valuation estimates are a good place to start when exploring what your house may be worth. These estimates are often inaccurate in that they provide the estimate based of overall averages in the area. What these tools often get wrong is that each property is unique and so may over or undervalue a home. Websites like Zillow offer such valuations with tools like their Zestimates.
Comparative Market Analysis (CMA)The next tool is a lot more accurate than any online valuation estimate – the Comparative Market Analysis (CMA). CMAs dive deeper into a price analysis by focusing on the subject property itself, rather than getting a broad overview. This analysis provides a more accurate estimate by pulling data from recently sold homes in your immediate area and takes into consideration your property’s features, size, age, bedrooms, baths, and additional elements that make the property unique. This information used to calculate a price and range that is more suitable and accurate to current market standards. A Realtor is able to provide you with a CMA by performing all the relevant calculations and adjustments. You can request your personalized CMA by contacting me here.
The home appraisal is by far the most accurate and legitimate valuation you can acquire. Only state-licensed appraisers can provide appraisal services. The appraisal process is methodically calculated and completely unbiased. The appraiser will take into account:
- comparable properties in the area
- condition of the exterior of your home
- condition of the interior
- the size of the property
- home upgrades
- and any other special features that make the home unique.
Unless the appraiser has overlooked a pertinent feature of your home the appraisal will provide the most true-to-market value possible. Sometimes you may not be happy with the appraisal result, this can be because of an overlooked home feature the appraiser missed. In these circumstances, you can appeal an appraisal for the adjustment needed. Appraisal services are often done at a fee reflective of the size of the home. If you wish to have your home appraised, tap into my extensive network of professionals and get a few recommendations by reaching out to me here.