Knowing your property’s worth on the market gives you better control over your insurance premiums, property taxes, and the refinancing or sale of your house. Many homeowners hire expert appraisers to assess their home’s market value, but it’s also possible to do it yourself.
Professionals at Donald Bake, Inc. talk about simple steps in home appraisal.
What is market value?
This is the price that a house would sell for under ordinary conditions. It doesn’t take into account transactions where the seller or buyer is forced to act, possibly due to divorce, passing of a loved one, or career relocation.
Market value is essentially an educated guess, but there are various ways to find out the most accurate and fair amount that your house should sell for. Here are some factors that may impact your home’s market value:
- Internal Characteristics – construction quality, number and size of rooms, energy efficiency, heating type, appliance condition, etc.
- External Characteristics – lot size, curb appeal, paved road, home condition, water and sewage systems, architectural style, sidewalk, etc.
- Location – the desirability of the neighborhood, school district, etc.
- Demand and Supply – turnover of homes in the area, the number of buyers versus the number of houses for sale
Estimating your home’s market value
The primary method that real estate agents and professional appraisers use is the sales comparison approach. Begin by looking for properties in your local area that were recently sold. Their sale prices could be a good start when assessing your home’s market value.
Research at least three other units that are similar to yours. It is also ideal if these were purchased under normal conditions.
There are some ways to determine the value of a house, but the most realistic estimate you can probably get is what someone is willing to pay for it.