If you're looking to move home, one of the first things you'll want to find out is how much your home is worth. It's not a simple process, but having an idea of your home's value can help you be realistic and pragmatic with your decisions about where you can move to next.
Even though keeping an eye on inflation rates can help you make ballpark estimations, it takes a little more work to get an accurate value,
If you want to learn how to calculate home value, keep reading this guide to find out.
Types of Valuation
Before you're able to calculate the value of your home, it's important to know that there are two different types of valuation.
Fair Market Value
The fair market value of a home provides you with an idea of how much you can expect to sell it for. This is based on a few different factors, such as the condition of the current market and the price of recently sold properties that are similar.
FMV is usually the first step in deciding the list value of a house.
The appraised value of a home is an independent assessment of the value of a home. An appraiser will take factors like the condition of the home, as well as any improvements that have been made, into account.
How to Calculate Home Value
There are a few different ways you can calculate home value. Which method you decide on can depend on how much work you want to put in, and why you want to know the value.
Hire an Appraiser
The easiest, and most accurate way to determine the value of your home is to hire an appraiser. This is a step that mortgage lenders usually take, and while it isn't necessary for the seller, some may find it helpful to have the most professional valuation available.
Ask a Real Estate Agent for a CMA
A comparative market analysis (CMA) is when a real estate agent analyzes comparable homes in order to estimate the value of your home. You can fill out a short form on our website to start the process.
Use a Home Value Estimator
The internet makes it easier than it has ever been to find out information about home values, not just in your area, but anywhere in the world!
Most websites that offer home value estimation will use something called an automated valuation model (AVM). An algorithm will use publically available data on the real estate market to give you a home value estimate.
While this value may not be 100% accurate, it can be a good guide if you're just at the stage where you're curious about what your home might be worth.
What Is My Home Worth?
So, now you know how to calculate home value, from comprehensive appraisals to online tools, you can get a good idea of how much you can expect to sell your home for.
Get in touch today with any questions you might have about your home, and why not check out the blog for more information and advice on all things real estate!