Home Value Estimator

Posted by Florida Realty Marketplace on Friday, August 2nd, 2019 at 8:00am

Home Value EstimatorBefore you can sell your home, you first need to find out how much it is worth. Using a home value estimator can help you quickly and accurately get an understanding of its worth.

Use an online valuation tool that uses the most up-to-date information based on data curated from multiple listing services, including current listing prices of homes for sale in Kissimmee, prices of recently sold homes in your area, and other similar information.

The prices you get from reliable online estimators are usually within 3% of the actual selling price. While the prices quoted by these online estimators are not considered a formal appraisal, you can use the amount as a benchmark for when you actually set a price for your home.

How a home is appraised for its selling price

Your first step in selling your home is having it appraised by a professional. While a home value estimator gives you a ballpark number, it cannot see the actual condition of your home. To get the most accurate price with all factors considered, you will need a real estate agent to come inspect your home. Here’s what appraisers consider when putting together your home’s worth:

Size

The size of your home has a huge impact on its value. This pertains not only to the property dimensions but also the size of the structure itself. When an appraiser comes over, they will ask for information on the total square footage of the living area, the size of the entire lot, and the number of rooms in the house, along with their individual sizes. They will also ask how many bathrooms you have and the dimensions of each. Simply put - the bigger your home is, the higher the price tag on it.

Location

Where your home is located will dictate its selling price. A major consideration is its proximity to facilities that matter to a homeowner, such as schools, restaurants, shopping, hospitals, and public transport. All these will have a bearing on your home’s value. Expect to get higher offers with a strategically located property. Location, however, is relative. Some buyers would choose the quality of a neighborhood over centrality, while others will buy somewhere more rural that is up for development.

Features

If your home has a swimming pool, a large garage, a backyard, sunroom, patio, or other extra features, you can expect the value of your home to go up. Indoor amenities, such as a spa bathroom, gourmet kitchen, and a fireplace, also adds to a property’s overall value.

Interior and Exterior Condition

When both are in good condition, expect a higher appraisal. This means your home should not have peeling paint, water stains, damaged flooring, and cracked windows if you want it to receive a good price.

Other things an estimator will consider when it comes to the condition of your home include the plumbing, countertops, fixtures, walls, and even the built-in appliances.

As for the exterior inspection, the focus will be on the home’s siding, roof, gutters, and foundation. The materials that were used on your home will be considered, as well as the landscaping, your driveway condition, and anything else that is a part of your property.

Recent Upgrades

If you’ve recently added new features to your home, it will be counted towards the overall value of your property. Did you redo your kitchen to make it look more modern? Did you add a spa bathtub to your bathroom?

Improving parts of your home before putting it on sale can increase the price substantially. Be careful, though. Not all upgrades help to increase your home’s overall value. In some cases, you might be paying for upgrades that won’t pay for themselves, overcapitalizing so to speak. This happens when you can’t recoup the money you spent on a property when you decided to sell it.

Your best option is to find out what people look for in a home in your area, and focus your upgrades on those to get the most out of a sale. Another option would be to upgrade according to the needs of your target market. If you want to attract a family, for example, make sure your property is accommodating without going overboard on repairs.

How to calculate the value of your home before an appraiser comes

Hiring a professional appraiser is pretty standard in the real estate market. In fact, lenders require a professional appraisal before loans are approved. To get an idea of what to expect before the appraiser arrives, here are some tools you can use.

Online estimator

You can start by using an online home value estimator. Find one that’s trusted and calculates accurate projections based on statistical data of your area. Your best bet is to use one that is connected with a real estate site.

Online tools use public records to come up with the most accurate estimate possible. These include recent sales and listing prices of similar homes in your area, tax assessments, property transfers, and deeds of ownership.

Not all online estimators give you the same value for your home, though. Try to use a few different tools to get an average value for your home.

House price index calculator

Also called an HPI, a house price index calculator is another quick way that you can get information on your home’s value. This can be found on the Federal Housing Finance Agency website and will give you an estimate based on mortgage transactions gathered over decades. This government agency tracks the value of your home over time with the use of sales information through the years.

This tool, however, is not recommended if you have a conventional conforming loan since the value calculated does not include inflation and seasonal adjustments. This is best used along with information from other sources.

Comparative market analysis

This is something you can get from a local real estate agent. Asking for a CMA will give you information on the possible value of your home. This can be a hit or miss, depending on who you ask and what they are expecting from you in return.

The accuracy of a CMA can be somewhat questionable if done without prior research. To ensure that you’re not given a price that is too high or too low, do your own research first before you ask an agent to give you a comparative market analysis and price for your home.

Mistakes to Avoid When Trying to Valuate Your Home

Want to set a selling price all on your own?

It’s your prerogative to do so, but there are some variables you must take out of the equation.

Emotions – some people have a very strong attachment to the home they are trying to sell. This usually leads to a homeowner asking more for a property than it’s worth. Always consider the property’s facts and not the sentimental value.

List price – one of the mistakes people make when they set a price for their property is to base it simply on the list price of homes around them - or “comps”. You should know that a list price is not the actual selling price. It can be higher or lower when the house is finally purchased. Take into account other factors that can increase or decrease property value.

Wrong property comparison – when you use comps as a point of comparison for your home’s value, you should choose ones that are very similar to yours in size, location, and quality. Don’t use as reference properties that are similar in design but in a different location or bigger or newer than your home.

Current market conditions – prices in the real market fluctuate. This is usually dependent on the market conditions in the area at the time of a sale. If you want to get the most out of your home when closing a deal, check the market conditions before having it listed.

Why knowing your home’s value is important

Knowing your home’s worth is important for a number of reasons. This understanding will help you:

  • Evaluate what you can do to increase the overall value of your home.
  • Figure out how much you can take out as a loan based on your home’s equity.
  • Determine how much in property taxes you should actually pay every year.
  • Know a ballpark price for when the time comes to sell.
  • Have more control over the selling process

Although you have a variety of options when it comes to understanding your home’s worth, the most accurate way to do so is by working with a local professional real estate agent. An agent has insider information about the market that online tools simply can’t provide. It’s recommended to work with a trained professional to ensure you get the best possible price for your home. Contact us now to know more!

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