Darin and Christina Cunningham | Re/Max Elite
278 Franklin Road Suite 190 | Brentwood, TN 37027
Office: 615.661.4400 | Fax: 615.661.4115
Christina: 615.394.4168 | Darin: 615.456.4086

How Much Is Your Home Worth?

Are you wondering what your home is really worth? Generally a house is worth what someone is willing to pay for it. The worth of your home depends on the current market and who you are asking. A lender, county tax assessor or a real estate agent have their own ways of determining the value of your home.

You can calculate the value of your home and determine what it’s worth all by yourself. This prepares you to sell, buy, refinance, tap into the home’s equity or negotiate lower property taxes. It also helps provide a picture of your financial health which is also important. Here is how you do it:

Using online tools

There are numerous online valuation tools that you can use to find out the real value of your home. They are known as automated valuation models (AVMs) and they are offered by real estate sites and lenders as well. They use public records such as property transfers, tax assessments and deeds of ownership along with mathematical modelling to predict the home’s value.

Comparative market analysis

A local real estate agent can also help you calculate the value of your home. Ask a local realtor for a comparative market analysis. It’s not as detailed as a professional appraisal but it provides the agent’s evaluation of the home and market providing an estimate of value mostly used for listing purposes. It’s good to get a real estate agent you trust as some agents might give you the CMA with hopes of getting hired as a selling agent.

Using the FHFA house price index calculator

The Federal Housing Financing Agency has a house price index that applies a more scientific approach when calculating your home value. It uses a repeat sales method together with millions of mortgage transactions gathered since the 70’s. The HPI calculator is able to determine how much your house has appreciated over time.

Hire a professional appraiser

This might be the best way to get an accurate evaluation of your home’s worth. As a property owner, you can get the house appraiser to calculate the house’s value at any time. The appraiser gives the house value based on the needs of the client. The appraiser evaluates the market, the property and other comparable properties in the same market or neighborhood. The information is used to create a final value of the home and is delivered to the owner.

Evaluating comparable properties

This is an important factor and it’s used by appraisers and AVMs. They check the current sale value of comparable properties. More than half of the US homeowners use comparable properties to determine the value of their property. You don’t have to pay an appraiser, but you have to be careful not to use the property next door as a comparable property if its price is significantly higher or lower. Choose similar homes when looking for comparable properties.

Knowing your house’s value helps you decide how to price your home and also know what you can afford. Stay sharp and up to date with your current home value.

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