Can I Find Out How Much My House is Worth?
“Can I find out how much my house is worth?” This is the first question every client asks before they want to sell their home. The real estate market makes homeowners wonder if they should sell their houses.
You can take advantage of rising house prices by selling when the time is just right. I advise finding your homes beforehand.
Keep reading to learn how to find out how much your house is worth for free.
Can I Find Out How Much My House is Worth?
Yes, you can find out how much your house is worth for free, quickly, and easily. The best way to assess a property’s worth is to speak with a local real estate agent.
A real estate agent will visit the property, compare sale prices, and assess the appropriate buying market for the property.
Another way to analyze a house’s worth is to research online. However, while these are quick and easy to do online, without speaking to a realtor, they are not always a completely accurate depiction of how much your property is worth.
How is Home Value Determined?
A home’s value is dependent on:
- Supply and demand
- Square footage
- The quality of the space
Additionally, there are two values that real estate agents look at when determining home value:
- Fair Market Value – Fair market value is estimated based on a comparative market analysis. In other words, a real estate agent will consider what similar homes in your area are selling for. If your home is especially unique, certain features may affect its value. Don’t let your agent say otherwise to sell a house fast. Look at the comps with your agent to determine which homes they’re comparing yours against.
- Appraised Value – When you bought your home, a licensed appraiser visited the property to determine a value for tax purposes. Appraisers consider your location, the size of your home, and the home’s condition. If you’ve made renovations, home improvements, or added square footage while you’ve lived there, you may want to hire an appraiser to reevaluate the worth of your home. This can cost anywhere from $250 to $500.
How to Find Out What Your House is Worth For Free
As a prospective seller, it’s essential to be involved in the process with your real estate agent to get the best value. It’s worth the thousands of dollars you stand to lose out on if you don’t check the facts.
Here is how you can find the value of your home FOR FREE.
1. Ask a Real Estate Agent For a Free Comp
The most reliable way to find out how much a house is worth is to ask a real estate agent. In fact, ask three or four. As with any profession, there are good agents and bad agents. Most agents are happy to offer a free comparative market analysis (CMA) if they think it could get them your business.
Be sure to dig into the comps provided. Cross-check the houses they’ve chosen to compare your house to by going on Zillow or Realtor and searching for the address. Ensure these homes are truly comparable to yours.
The bonus is that if you do decide to sell your house, you’ll have the choice of an agent with proven research skills. Plus, you’ll know they won’t try to lowball you just to make a sale.
2. Check Appraised Value On Your County Auditor’s Website
After you originally purchased your home, your county would have sent out a licensed appraiser to assess the value of your home for tax purposes. If you bought your home recently and want to capitalize on the sudden rise in home prices, you can see what the county appraiser valued your home at without having to pay for your own licensed appraiser.
If you’ve made renovations since then, stick with asking a real estate agent to help you determine the worth of your home. After all, county appraisers generally don’t enter the home to assess value without a sale taking place.
3. Use the FHFA HPI Calculator
The Federal Housing Finance Agency’s (FHFA) House Price Index (HPI) calculator uses historical mortgage data to analyze what the price of your home may be worth based on the appreciation of homes in your area. This will give you imputed equity in your home. This is a figure that will help you understand appreciation and decide if it’s in your best interest to sell at all.
Using this method to determine the value of a house for free is a broad stroke. But, with access to tens of millions of home sales data, it’s worth a look. It won’t tell you what your specific house is valued at. However, it will provide you with insights regarding market activity in your locale, which can help you decide whether now is a good time to sell.
Summary
Real estate is one of the best investments you can make. It can be tempting to sell when the housing market is hot, but remember that you also need a place to go. You may end up buying a house for more than it’s worth in an effort to sell your current home, since if your property value is up, so is everyone else’s.
If you’ve run the numbers and realized it’s not worth selling, consider investing funds into improving your home. When you decide it’s finally time to sell, your home will be worth more objectively, instead of being dependent on uncontrollable market factors.
