Before you can buy, sell or refinance, you need to know the estimated value of your home. Let’s look at four strategies you can use to accurately determine your home’s current value. One of the easiest ways to estimate the value of your home is by using an online home valuation tool. Many companies, including Rocket HomesSM, typically offer these tools and rely on recent sales in your area to determine your home’s value.1. Use Online Home Valuation Tools
The benefit of using a home value estimator is that you’ll receive an immediate estimate. However, different sites will use different metrics to evaluate your home, and some are more reliable than others. So, if you choose to go this route, it’s essential to use trustworthy sites.
2. Hire A Professional Appraiser
One of the most accurate ways to figure out the value of your home is by getting a home appraisal by a professional. Lenders will rely on a third-party home appraiser before approving a mortgage, but it’s not a requirement for homeowners. However, using an appraiser is a good idea if you’re preparing to sell your home.
During the appointment, an appraiser looks at many factors to determine the home value estimate. They’ll look at the current condition of your home, your neighborhood, the market conditions and comparably priced houses to assess your home’s value. For this reason, it’s much more accurate than just getting an online home value estimate.
3. Consult A REALTOR®
Another good option is to have a real estate agent or REALTOR® help you determine the value of your home. REALTORS® will look at the current housing market and use a comparative market analysis to assess your home’s valuation. Plus, real estate professionals can access credit monitoring analysis (CMA) data.
Having a REALTOR® assess your home’s value is less detailed than what you’d receive with a professional appraiser, but it’s still a good option. Real estate agents can make recommendations, like ways to improve the aesthetic appeal of your house, in order to increase the value of your home.
4. Pull ‘Comps’ On Similar Properties
Real estate comps are comparable homes in the area where you’re looking to sell. If you check online sites, you can find information on nearby properties that sold recently. Not only will you see the price listed, but you’ll see how those homes compare to yours.
The advantage of using this strategy is that it’s free and easy and can help you determine what to list your home for. It can also help you identify specific features in your house that home buyers are looking for. However, this strategy is less reliable than consulting a real estate professional or hiring an appraiser.
