How Much Is My House Worth?<\/h1>\n

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Hello, people. Welcome to the CORE College of Real Estate Youtube channel. The past year or more has been a roller coaster ride on many fronts, with a silver lining for homeowners: Home prices have risen considerably.\u00a0<\/span><\/p>\n

You might be wondering if you should take advantage of the increase in values and sell your home or try to tap its newfound equity. As you consider your options, a good starting point is to ask yourself: exactly how much is my house worth? If you want more real estate content, subscribe to the CORE College of Real Estate Youtube channel and hit the notification bell.<\/span><\/p>\n

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Take into account the three major types of valuation:<\/strong><\/h2>\n

Fair Market Value<\/strong><\/h3>\n

Fair market value is the difference between what your home looks like to prospective buyers, compared to other homes in the area. Consider how much a house comparable to yours sold for on the resale market.<\/span><\/p>\n

Appraised Value<\/strong><\/h3>\n

While you might view the appraised value of your home as useless, there is a way to find out how much it\u2019s worth. The appraised value takes into account the location, size, and condition of the house while considering any renovations you\u2019ve completed. The appraised value is what mortgage lenders take into consideration when someone pays off their mortgage or buys a new home.<\/span><\/p>\n

Assessed Value<\/strong><\/h3>\n

Tax assessors assign dollar value to your home based on what they think it could sell for, without considering the actual price a buyer will be willing to pay. TXH Homes specializes in Carlsbad real estate, and has agents located across the country.<\/span><\/p>\n

Home appraisers estimate home values based on numerous data sources, but those values are usually only a starting point.<\/span><\/p>\n

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How to figure out how much your house is worth:<\/strong><\/h2>\n

Enter your address into a home value estimator<\/strong><\/h3>\n

These online tools \u2014 sometimes called automated valuation models, or AVMs \u2014 use algorithms and publicly available data, such as recent sales, tax assessments and other public records, to generate estimates. With a quick Google search you will find several services that make this type of service easy to do.<\/span><\/p>\n

There are many home value estimators, each using a different methodology. Each of these can be thought of as an estimate that can give you an idea what the value is of your home.<\/span><\/p>\n

Home value estimators are good to start with when assessing the value of your home. However, these estimates are based on an algorithm that relies heavily on the number of bedrooms, square footage and market activity. It doesn\u2019t take into consideration recent updates and external factors such as traffic noise.<\/span><\/p>\n

Home value estimators and iBuyers provide buyers with an indication of what their home is worth. However, these estimations are frequently misleading. The value provided by the home builder tends to be more accurate than the one given by an online iBuyer company.<\/span><\/p>\n

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Pros: Algorithms that power home value estimators and “I bought this for $X” offers have come a long way.<\/span><\/p>\n

Ask a real estate agent for a free comparative market analysis<\/span><\/p>\n

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Real estate agents typically provide a comparative market analysis (CMA) in hopes of winning your business. They use their knowledge of the neighborhood and any special characteristics of your property to estimate its value. A buyer’s agent may also provide this same service for any home you would like to make an offer on, as well.<\/span><\/p>\n

Robert Krasow, with Michael Saunders & Company, says that a good agent will be able to drill down and find an accurate market value by looking at home conditions and knowing the neighborhood. This process might also involve data.<\/span><\/p>\n

Pros: It’s a plus to have an expert help you identify potential customers, answer questions, and give guidance.<\/span><\/p>\n

Even with the best data, real estate agents can have conflicting opinions and use different comps. If there haven’t been many sales in the neighboring area, or if the comps are not that similar to your property, accurate estimates are hard to determine.<\/span><\/p>\n

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Check your county or municipal auditor\u2019s website<\/strong><\/h3>\n

For those who want to understand the value of their home, this online tool uses property values and tax data to estimate your taxes for you.<\/span><\/p>\n

County auditors periodically assess the value of residential properties for property tax purposes, and this information is searchable online. You can look up the assessed value of your house to see if it has appreciated, or compare the figures with other homes for sale.<\/span><\/p>\n

There are always risks involved with real estate commissions and estimates given may not reflect market conditions. It is important to do your research before purchasing a property or moving.<\/span><\/p>\n

Identify trends with the FHFA House Price Index calculator<\/span><\/p>\n

Seeing how trends in property prices can be valuable to determine how expensive an area is. Property price prediction software may be a better way for these people to invest their funds than buying stocks.<\/span><\/p>\n

With the Housing Price Index Calculator, which is a free tool available on the Federal Housing Finance Agency website, you can data mine local homes to project what your home will be worth based on the rate of appreciation for all homes in your state or metropolitan area.<\/span><\/p>\n

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The home calculator uses nearly 100 million historical data to provide homeowners with insights on the affordability of neighborhoods, helping them make more informed decisions.<\/span><\/p>\n

The Down Payment Calculator is the first – and still the only – financial calculator for real estate. It offers a look at the appreciation or depreciation of your home property over time, but doesn’t have the specific information of your current property in mind. While this gives an overall market idea, you can compare with other similar properties to get more granular financial info from a dedicated calculator.<\/span><\/p>\n

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Hire a professional appraiser<\/strong><\/h3>\n

Appraisers help confirm the value of a property before lending money. If a seller decides to go ahead and hire one, it’s not required, but it helps make sure there are no problems with the house. Appraisers look at things like how many bedrooms and bathrooms, as well as price per square foot to make sure that there is no over pricing of homes.<\/span><\/p>\n

Receiving an appraisal from a lender can cost anywhere from roughly $300 to $420.<\/span><\/p>\n

Your home’s value can rise due to a range of factors, such as a housing shortage and the lowest mortgage rates in history. If your home’s value has increased, you will want to consider these options:<\/span><\/p>\n

If you’re paying mortgage insurance and your home has increased in value enough to have at least 20% equity, you can ask your lender to cancel your PMI premiums.<\/span><\/p>\n

It’s important to review with your insurance agent that your residence is properly insured. Your homeowners insurance cost and coverage are usually based on the value of your home, so if it increases you’ll want to make sure you’re fully protected.<\/span><\/p>\n

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You\u2019re better positioned to improve your home if you know how much equity is in your home. With this knowledge, you can tap into the equity through loans such as a home equity loan or cash-out refinance, where the investment would be used for a remodeling project.<\/span><\/p>\n

In order to maximize the value of your home, you could consider selling it. If you make minor repairs and declutter your home, this will increase its value. Duffy says that “if it is a good time” you should do these things to sell your home for the best price possible.<\/span><\/p>\n

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My home\u2019s value decreased. What should I do?<\/strong><\/h3>\n

There are many factors that can make home values for any given period go up or down. These factors include the type of market at the time, economic shifts, construction costs, and buyer demand.<\/span><\/p>\n

\u201cLocal political issues, climate changes, transportation and employment opportunities \u2014 or lack of these last two things \u2014 can influence home values,\u201d according to Gerard Splendore, an associate broker with Warburg Realty in New York City. \u201cSelling may not be a good idea, unless it is apparent that values will continue to decrease.\u201d<\/span><\/p>\n

Wait out a downturn rather than making a rash decision. If you can wait out the storm, that may often be best.<\/span><\/p>\n

Duffy says home prices will be influenced by the economic climate and how many houses are available on the market. If you can postpone selling, prices will drop over time.<\/span><\/p>\n

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What factors affect home value?<\/strong><\/h3>\n

The neighborhood<\/span><\/p>\n

Its age<\/span><\/p>\n

Its condition<\/span><\/p>\n

Its size<\/span><\/p>\n

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Any home improvements or upgrades<\/strong><\/h3>\n

There are other factors that impact the overall property values, too. These include local housing markets, economies, interest rates and tax rates, Reed says.<\/span><\/p>\n