What Is My Home Worth?

May 31

Tips for calculating your home’s value

Whether you're considering selling your property, refinancing your mortgage, or simply curious, understanding how to determine the market value of your home is crucial. Accurately assessing your home's value empowers you to make informed decisions and navigate the real estate landscape with confidence. In this blog post, we will explore several methods that can help you find out what your home is worth.

How to Figure Out What Your Home Is Worth

Use Online Valuation Tools

One of the quickest and easiest ways to get an estimate of your home's value is by using online valuation tools. Websites such as Zillow, Redfin, and Realtor.com offer automated valuation models (AVMs) that utilize algorithms and data analysis to provide estimates based on property information and recent sales data.

However, you should know that while these tools can give you a rough estimate, they may not capture the intricacies and unique features of your home accurately. Keep in mind that the margin of error on these automated models can be as high as 7% or more, so use this tool sparingly or in situations where you’re simply trying to stay informed (rather than using them to make a big decision).

Get a Comparative Market Analysis (CMA)

A CMA is a report prepared by a real estate agent that provides an in-depth analysis of your property's value by comparing it to similar properties in your area that have recently sold. Real estate agents have access to multiple listing services (MLS) that contain comprehensive data on recent sales, pending sales, and active listings. Working with an experienced agent who can prepare a CMA tailored to your specific home and neighborhood can provide you with a more accurate assessment of your property's value.

Incorporating the human element into your evaluation will increase the value tremendously, especially if your home is custom-built, in a more rural area, or has unique features that impact the value, such as views or walkability to popular neighborhood amenities.

Hire a Professional Appraiser

If you want a highly-accurate assessment of your home's value along with a professional report delivered at the end, hiring a professional appraiser is the way to go. Appraisers are licensed individuals who visit your property, assess its condition, size, and features, and then compare it to recent sales in the area.

They consider factors such as location, upgrades, amenities, and the overall condition of your home. While this method typically costs a few hundred dollars, it provides an unbiased and comprehensive evaluation of your property's value. Having an appraiser or multiple appraisers evaluate your property is necessary when tax or legal implications arise in your real estate adventures. For example, determining the new tax basis upon inheriting a property, coming up with an evaluation to buy out a partner, or appealing your property tax assessment.

Monitor Market Trends

Keep an eye on real estate market trends in your area to gauge the value of your home. Research recent sales, listing prices, and the average time properties spend on the market. Look for indicators of appreciation or depreciation in property values, such as new developments, infrastructure projects, or changes in demand. Staying informed about the market can provide you with a better understanding of the factors that influence your home's value.

Determining your home's value is a crucial step when making important real estate decisions. While online valuation tools provide a quick estimate, they often lack the precision needed to give an accurate value.

Employing methods such as a Comparative Market Analysis, hiring a professional appraiser, consulting with local real estate agents, and staying updated on market trends will help you arrive at a more accurate valuation. Remember, a combination of these methods and expert advice can empower you to make informed decisions that work best for YOU!

Brent Edwards (aka Brent the Broker) is a residential real estate agent and Realtor in San Diego, CA who helps clients buy and sell homes in San Diego, California and all surrounding areas. Brent is a highly-recommended Realtor in San Diego by family, friends and past clients. Call Brent today at 619-550-8070 if you have any questions about real estate in San Diego or you'd like to buy or sell a home.