Your home is not only your fortress but also an investment. That is why the interest in its value is rational and relevant both for those who plan to sell their housing soon and for those who are guided by curiosity. Do you belong to the second or first club? Is the evaluation of the house critical to you right now? Let’s study the aspects that help determine your home’s worth, along with ways of assessing and raising its value.

Types of assessment

Realtors and experts estimate the cost of a house based on the main types of assessment. They are:

• Fair market value. These figures show the approximate cost of your house compared to the same or similar housing. The same square footage, layout, location, or age of the houses you target indicate the average money their owners expect to receive and what buyers are willing to pay. All you need to know about the fair market value of your house is to study the offers on the market alone or with a real estate agent.
• Appraised value. This assessment is more individual and implies determining the value of your house based on its location, condition, and other factors. The appraiser can look at the size of the house, the location of bedrooms and technical rooms, the quality of maintenance, neighbors, etc. In short, the appraised value is the sum of money your house deserves when selling or refinancing a mortgage.
• Assessed Value. County tax inspectors use this metric to calculate property taxes. The assessment of a specific housing requires using a certain formula and considering several factors, where both fair market and estimated value are on the list. Home improvements can also play a role. The assessed value is the quickest estimate, which is lower than the fair market value and hardly correlates with the actual sum of money that you can get for a house.

Factors that Affect the Value of a House

The total money your house is worth depends on the assessment in terms of various factors. Among them are:

• The neighborhood. We don’t think it’s worth discussing the importance of the house’s location since you already know everything about it. You also bought this house because you liked the place, didn’t you? Yes, we all look at the location, facilities, and reviews of people living next door. We need all this for a prosperous and safe life.
• Age of the property. This is a factor that you cannot change. Do not be chewed up if the date of construction is quite a long time ago. Buyers are more likely to prefer an old but robust and high-quality house than a new residential building with an inconvenient layout or a flimsy frame.
• The size. The footage of your house is another powerful indicator to evaluate since experts determine the cost of housing in dollars per square foot or meter. Take the assessment on this point as an objective for the market and do not think your house is too small or too big. In the end, every property finds its buyer.
• The condition. The cost of the house in terms of its appearance and usability is your merit entirely. We are sure you understand that neat housing, a cozy interior, and perfect utilities will inspire buyers more than peeling walls, an unkempt garden, and a non-working water supply.
• Upgrades. Relevant improvements to your home can contribute thoughtfully to its cost, whether it is a fashionable redevelopment, a swimming pool, or a Smart Home system.

However, the latter factor often becomes a stumbling block between sellers and buyers. For example, the former has installed a high-tech kitchen for several thousand dollars, a fashionable stereo system in the bedroom, or a lavish winter garden and now want to return the investment. The latter is considering completely different priorities. Don’t be too persistent, but don’t miss your own. Do not let customers devalue the improvements in which you have invested your money and soul, but be ready to meet those who appreciate them. A small discount is quite enough sometimes.

Unfortunately, other factors affect the cost of the house and do not depend on us. The fluctuations of the local housing market, interest and tax rates, and the state of the economy are things that have to be taken for granted in your current housing assessment.

How to Find Out How Much My House Costs – 5 Easy Ways

1. Consider Home Value Estimator

Home value estimators are a kind of automated estimation model (AVM). These online tools use algorithms based on publicly available data on the housing market and the personal categories of houses and derive an estimate based on this. Here is a list of the most popular services:

• Chase Home Value Estimator
• Redfine Home Value Estimator
• Realtor.com My Home
• RE/MAX Home Value Estimator

The estimation of the same house in these services may vary, as their developers use different methodologies and algorithms.

Various “quick sales” services are another option for online estimation as well – here, we mean iBuyer, Offerpad, and other companies. However, do not take their assessment too seriously, as they offer a sale at a price based on their own judgment.

Why Use: It’s convenient! Just enter your address in the line, and you will see the approximate cost of your house right away. This is a good starting point if you are estimating the value of your home out of idle curiosity or if the sale of the home is still in the long term.

Why Ignore: You will put the house up for sale and need specific amounts you can count on. Unfortunately, the algorithms of home estimators are imperfect and miss essential factors such as the house’s condition, the improvements, the well-groomed garden, and the neighborhood.

2. Turn to the FHFA House Price Index calculator

The Federal Housing Finance Agency has developed this tool based on mortgage loan info. After analyzing the given data, the service offers a forecast on the cost of housing in a particular state or metro area.

Why Use: You want to assess the dynamics of housing prices in general. The work of the tool is based on tens of millions of sales and purchases of houses so that the final data for the period you need will be more impartial and close to reality.

Why Ignore: You will not define the market value of your house as a separate object with a specific assessment. HPI calculator helps to estimate the trends in increasing or decreasing the cost of housing in the local market and does not take into account the personal characteristics of a building. You are unlikely to get specific numbers for selling a house.

3. Study Your Municipal or County Auditor’s Website

Consulting with the data of your county auditors makes it possible to define the value of your home. However, here we are dealing with the assessed value since it only concerns the amount of taxes. From time to time, auditors update the cost of housing for correct taxation. You can use this data to determine your residence’s value and compare it with other accommodations.

Why Use: This is the open info that will give you another starting point to assess and compile an attractive offer.

Why Ignore: We have already said that the assessed value may be far from the market value. It is based on an assessment from the point of view of taxes and overlooks the objective factors people are guided by when choosing and buying a home, including the time of year and curb appeal.

4. Contact an Agent for a Free Comparative Analysis

So, have you decided to play big and put your house up for sale, or take this prospect seriously? It’s time to contact real estate agents for comparative market analysis (CMA). This service is often free, as the staff of real estate agencies strives their best so that you entrust them with a deal.

Experienced agents have sufficient knowledge of the process to make a detailed and accurate analysis. They make an assessment based on up-to-date info on home sales in your area, studying the unique characteristics of your house and its relevance to buyers’ requests. You can also hire an agent for the CMA if you are purchasing. A specialist can perform an analysis for any house whose owners you want to make an offer.

Why Use: Determining the value of a house by an agent is trustworthy and impartial. Good specialists monitor the market, do not lose sight of critical details, and give valuable recommendations on preparing the house for a better sale.

Why Ignore: You can’t avoid subjectivity when working with people. Real estate agents may have different points of view on the value of your house, which can add confusion to your spirit. Besides, there may not be enough information for them to analyze if you live in a new area where there have not been enough sales yet.

5. Work with a Professional Appraiser

You will need this option when you start a serious house sale game. A professional and accurate assessment of the house is your starting point in this case, and an experienced appraiser will provide it.

Appraisers’ services are necessary for mortgage lenders to confirm the cost of housing before approving a loan. However, you can also use their experience to understand how much your house cost today. The expert considers all the property characteristics and can use CMA to get more accurate and complete calculations.

Why Use: Experienced appraisers’ work is based on a license or certificate. They are conscientious and objective in assessing real estate so that you get the most correct price you can get for the house.

Why Ignore: This is a paid service; you will have to shell out about $300-450 to evaluate. You cannot avoid this if you are planning a mortgage. However, you can also give up the idea of a professional appraiser if it is your initiative.

What Should I Do If the Value of My House Went Down?

The cost of housing almost always shows steady growth, but there are periods of price declines that do not depend on the owners of houses and apartments. Climate change, the job market, economic crises, and even the season are the factors that can affect the price of your home to a worse extent. Is it worth worrying about and selling your as soon as possible, without waiting for a more considerable drop?

Experts insist you should not make hasty decisions. Eventually, housing prices recover and go up. Just wait out the recession if you are not in a hurry to move, and selling real estate is not a matter of life and death for you.

What Should I Do if the Value of My House Went Up?

Housing prices can rise gradually and steadily or spontaneously and for a short time, depending on mortgage rates and the economic climate. Anyway, you may benefit from this promotion. Dispose of the new features:

• Eliminate PMI. You can ask your lender to cancel your private mortgage insurance premiums if the increased value of your house has allowed you to receive at least 20% equity.
• Adjust your homeowner insurance policy. The value of your home is the key factor in assessing your homeowner’s insurance coverage. The more expensive the house is, the more insurance protection it requires. Real estate experts recommend checking the value of your property at least once a year to ensure that the insurance coverage is sufficient and to review the cost of the policy if necessary.
• Upgrade your house. The increased cost of the house opens up opportunities both for the purchase of more prestigious housing and for drastic improvements in the current one. You can count on a loan or refinance, so make a detailed assessment of the cost of housing and estimate your potential.
• It’s time to sell! A remarkable increase in the value of a house often becomes an impulse to sell. However, do not rush to advertise headlong until you have weighed all the pros and cons of selling at this time. Consider your prospects for buying a new house and the possibilities of moving for your family. The coincidence of all factors means that luck has smiled on you, and it’s time to start selling.

How Often Should I Check My House’s Value?

Experts recommend reviewing the value of your home at least once a year. Such concern is relevant for the following aspects:

• Revision of taxes;
• Change in the cost of insurance relative to the increase in the price of real estate;
• Assessment of accumulated capital for obtaining refinancing or a loan for the purchase of new housing;
• Search for a good selling moment.

You can make an assessment more often if the issue of selling a house becomes more urgent. Online tools are excellent for curiosity and exploring more deferred issues while starting a sale requires the services of professional agents and appraisers.

To Sum It Up

There are various tools for estimating the value of a house, but none of them will give you one hundred percent accuracy. Use a combination of these methods to get the most realistic price for your housing. Also, you should not ignore unpredictable factors, including sudden collapses or market ups, seasonality, and the mindset of the potential buyers.