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What’s the Value of My House?
Wondering how much your home is really worth? Read on to discover how to find the true value of your property.
How Much Is My Home Really Worth?
I want to let you in on a little secret:
Online home valuation tools, also known as automated value models, aren’t always accurate.
If you’ve been considering selling your home, you’ve probably popped your address into a ton of online tools to find the market value of your home. My guess? You got very different answers and were either (a) supremely disappointed or (b) falsely led to believe that your home is worth more than it is. I know…it’s frustrating!
Most real estate sites and independent brokerages use online instant home valuation tools. While these can give you a ballpark estimate of what your home is worth, these tools aren’t always accurate. Why is this the case? Because online tools are automated and have limitations that leave room for error. In other words, this is one of those cases where it’s better to have an experienced, old-fashioned human being dig into the details and provide you with a more in-depth picture of your home’s value.
The best ways to determine the true market value of your home are to:
- Hire a professional appraiser
- Contact an experienced real estate agent who knows your area for a free consultation.
While home appraisals are required by lenders before a transaction, a property owner can request an appraisal at any time—particularly if you’re looking to refinance your mortgage, apply for home equity lines of credit or for any other purpose.
However, if you’re looking to sell your home, it’s really important to work with a seasoned real estate agent who can give you the true value of your home and set the right price by providing you with a comparative market analysis.
Comparative Market Analysis (CMA)
A comparative market analysis, also known as a CMA, is a thoroughly produced estimate of the value of a property based on similar properties that have recently sold in the same area. CMAs are generally based on the sales data from three similar homes, or “comps,” that have recently sold in your area. The real estate agent will then conduct a thorough walkthrough of your property, evaluating its age and condition, square footage, the number of bedrooms and bathrooms, lot size, layout, special features, improvements and other notable characteristics to determine its value before listing and give you strong pricing recommendations.
In addition to evaluating your property with a fine-tooth comb, your real estate agent will also use market-based information—proximity to amenities, local schools, current listing prices if recent MLS sales data isn’t available—to get to the bottom of what your home is actually worth.
The bottom line: always consult a seasoned real estate agent to understand the true value of your home. While some home valuation sites are more accurate than others, there’s no substitute for having an in-person consultation with an appraiser or real estate agent who knows their stuff—and your local market—inside out.
