There are many variables that are important to consider when determining your home’s property value. Location, condition of the home, and interest rates are just a few of the factors that could affect the value of your home. The toughest part about trying to determine property value is that even if you understand what factors to look at, one has to understand how to interpret that information. However, there are several steps that you can take to get a better feel for what your house is worth.
1) Pay Attention to Property Values in Your Area
The first step that you need to take when determining your home’s property value is to study the selling prices of similar properties in your area. The important thing to remember is that you must compare apples to apples. Look at properties that are alike in size, configuration and condition preferably in neighborhoods and cities that are similar to yours. Talk with your colleagues, friends and family and ask what they sold their properties for. Note that your peers are not experts, but asking could be useful for basic information about your area’s property values.
2) Visit House Showings
The second step in helping you figure out your property value goes hand in hand with the first step. Another way to study the prices of the property values in your area is to visit showings of other properties that are being sold in your area. Make sure to ask the owner what the listing price of the property is to get a better understanding of what your own house is worth. Going to showings will also help you to find out the condition and configuration of other houses in your area.
3) Study Home Value Estimators on Real Estate Websites
The next step to finding your property value is to visit real estate websites that have property value estimators for specific areas and properties. There are many websites that have exceptional information and features that can be useful in helping you buy, sell, rent your property. What you are going to do is simply browse the listings of the houses that are on the website. Still using the apples to apples tactic, make sure you look at properties with similar square footage, number of rooms, neighborhoods, and condition as your own home.
Some websites can also give you an estimate of what your house is worth if you input information about your property including the address. The estimate will be based on data that you input, comparisons from properties that are similar and statistical information. Before using a certain website, make sure to do some research about the different resources the website uses. A couple of reasonably reputable websites include Zillow and Trulia.
4) Check the Federal Housing Finance Agency Index
Another optional step for determining your home’s property value is to check the Federal Housing Finance Agency Index. The Federal Housing Finance Agency is a government agency that has collected housing prices from properties across the country since the 1970’s. It has tons of information and it is very simple to use. Enter in the data that it asks for and it will tell you how your house has appreciated or depreciated from the time you bought it to the current period. However, there is a caveat with the FHFA index. It does not take into account individual property information which often affects home prices, so it may not be completely accurate.
5) Hire a Professional
The fifth and final step for determining the property value of your house is to speak with a realtor or an appraiser. A realtor is a licensed person that can help you buy or sell your home. An appraiser is someone who specializes in the technical aspects of properties and the real estate market who gives professional reports on home values. Hiring a professional is the most reliable way to discover your home’s property value.
Many people will end up hiring both a realtor and appraiser. This is because realtors make the selling process much easier and can help you get the most for your home and an appraiser can give you the most exact opinion of what your home is worth in the current market. If you have the means, it may be a good idea to get multiple opinions from different appraisers. If you are only going to hire one person, it would be advisable to hire a realtor because a realtor can help you jump through every hoop on your selling journey.
Let Besst Realty Help You in Determining Your Home’s Property Value
Make sure to do your research ahead of time when determining which professionals to hire. Here at Besst Realty, we have many resources available to you. We offer the best of the best services to help you begin your selling and buying processes as well as tips for all your real estate needs. Not only can we help you discover the market value of your home, but we can help you sell your home for the greatest price possible. Contact us today!