What is My Home Worth?
Knowing the value of your home is important for homeowners at every stage. Whether you have decided to sell your home or just refinance, you need to know an accurate estimate of the worth of your home. If you've been wondering how much your home is worth, then look no further, this article is for you! Now, this isn't a comprehensive list of methods for calculating the value of your home, but it will help to give you an idea of what it might be able to sell for.
Hire a Hughes Group Agent
If you are trying to find the worth of your home to sell it, then you really need a Hughes Group real estate agent.
We here at the Hughes Group know how hard it is to sell a home, and believe us, setting the price is can be tricky. So, our first tip for finding out what your home is worth is to talk to a Hughes Group real estate agent. They have lots of experience and have plenty of tools and tricks to help you set the price of your home correctly. No worrying about whether you got it right or not - you are working with a professional.
If you are finding the value of your home for other purposes, there are a few methods that you can use. The ones we will talk about today are: online estimators, Comparative Market Analysis (CMAs), the Multiple Listing Service (MLS), and your property tax. Not any one of these are foolproof, but, when you use all of them in unison then you will come up with a decently accurate figure.
Remember, the key to making an estimate is to have a large sample size. Or rather, a large collection of possible prices. This will give you the highest likelihood of guessing the price right. What you will want to do is to open a spreadsheet of some sort where you can write down all of the estimates you receive. You can then use that software to find the average price from your estimates.
There are a lot of online estimators out there. Some of them are accurate, and some of them are not. However, they are free. What we suggest is to use a large handful of these estimators and put all the estimates into your spreadsheet. Using these websites will give your sample size a huge boost and help you make a more accurate guess.
However, there are some that are completely off base. If you find that one estimator gives you a price that is way higher than the rest of the ones you are getting, then it is probably inaccurate and should be discarded.
CMAs, or comparative market analysis, is a tool that a lot of real estate agents use. This will show you past information on your neighborhood. It will show you all the stats on the homes that have sold in your area for a specific amount of time. What you can do is take the selling price for all the homes that are similar to yours (in regards to square footage, number of bedrooms, age, and so forth).
Find as many homes that are similar to yours that have sold within the last year and record the price they sold for on your spreadsheet.
Look to Your Neighbors with the MLS
The Multiple Listing Service is a service that all real estate websites are connected to. When a realtor lists a home it shows up on the MLS. This allows anyone to search and find your home. What you can do is search for homes with the same characteristics as yours that are for sale right now to see how much they are selling for. Write down the prices in your spreadsheet.
This step is a bit technical, but it is a valuable data point to add to your list. This is how it works. What you need to do is find your most recent property tax bill that the government sent you. It will have two numbers on there that will help you to figure out what the government thinks your home is worth.
On your property tax papers look for these two numbers: the tax assessed value of property and the assessment rate. With these two numbers, you can find the value of your home. To make this work you will take the assessed value of the property (for example, let's say the assessed value is $200,000) and divide it by the assessment rate (let's say 80% or 0.80). So, in this example, the equation would be $200,000 / 0.80 = $250,000. That means your home is valued at $250,000 in the government's eyes. You can then add that value to your spreadsheet.
Now that you have all your data points, you can then find the average price of all these points. If you are using a spreadsheet software you can easily select a cell off to the side and type =average( select the data set, press the closing parenthesis ")" and then hit enter. The number that pops up in the cell where you typed the equation will be the average price and will be a pretty close estimate of the value of your home.
Appraiser: the Most Accurate Home Worth Evaluation
If you want to know exactly how much your home is worth from an expert's perspective, you can always hire an appraiser. An appraiser's word is pretty valid and they will know how the current trends are effecting the prices of homes. This may be an expensive way to do this, but it is pretty accurate. You might want to do this if you are planning to sell the home because this is exactly what a prospective buyer is going to do. They are going to hire an appraiser to come in and estimate the value of the home. So, instead of waiting until you have someone who is interested in the home to find out that it might be worth less than you expected, why not get it over with now?
Other Things that Effect Home Value
Now, there are many other things that can effect the value of your home. These are things that the rest of your calculation methods don't take into account. The following are a few of the things that you need to tell your real estate agent or your appraiser about so that they can make a more accurate estimate.
Amenities can be anything in the nearby area that might make living in a certain place more convenient. This can be parks, community centers, grocery stores, pools, and so on. Listing these to your appraiser, and putting them on the property description if you are selling it, will make it much easier to sell the home.
Additions and Renovations
Another thing to remember is whether or not your home has any additions or renovations. If you did anything of this sort to your home, and it wasn't visible from the outside, it won't be reflected in your property tax. So, make sure you list that as well in the property description.
There are many, many ways to calculate the worth of a home and all of them will change depending on the market trends. So, we will end this with the same advice we began it with: hire a Hughes Group Agent. Their expertise will give you the most accurate price. They know the current trends and have access to a lot of great tools that can help them. Hire one of them today and you won't regret it.
Call the Hughes Group to talk to an agent today!
Lastly, if you want to learn more about the awesome real estate opportunities in Boise, Idaho, then contact the Hughes Group of Silvercreek Realty today.