How Much is My Home Worth? A Home Appraisal Checklist
Once you’ve decided to sell your home, you may be wondering how much you can expect to get from it. While your home is ultimately worth whatever someone is willing to pay, many factors can affect its official valuation. Knowing how to calculate the value of your home will better prepare you for the selling process
, while also giving you a more accurate idea of how much home you can afford once it’s time to buy.
Here at The Redbud Group, our team of experts has created a home appraisal checklist to help you determine how much your home is actually worth. We hope that this checklist can serve as a valuable resource as you start the selling process and weigh the pros and cons of each valuation. Continue reading to learn more!
Why Does Your Home’s Value Matter?
Your home’s valuation matters for many reasons. If you’re planning to sell your home, an accurate valuation will help you set a listing price
that is fair and reasonable for both you and the potential buyer. A price that’s too high could make it harder for you to sell your home, while a price that’s too low could result in you leaving money on the table. Furthermore, knowing the value of your property can also help you determine how much you can afford when you’re ready to buy. By subtracting your mortgage
balance from the market value, you can gauge how much equity you have in the house. This will ultimately tell you how much cash you’ll have to make a down payment on a new home.
3 Different Types of Home Valuations
Before explaining the various ways to estimate your home’s value, it is important to understand the different types of home valuations that are available. Let’s take a closer look at three of the most common valuation types below.
1. Fair Market Value
The fair market value
of a home is the estimated price it will sell for, considering how it compares with other properties in the area. This value takes numerous factors into account, such as location, the number of bedrooms or bathrooms, and square footage or outdoor space. When you work with a real estate agent, they’ll look at comps to determine what buyers have been willing to pay for properties that are comparable to yours.
2. Appraised Value
is a property valuation that’s based on recent sale prices in your area and other factors that are specific to your home. To calculate the appraised value, a licensed appraiser will come to evaluate the location, size, and condition of your home, as well as any renovations you’ve completed. This value is then used as a safeguard to ensure lenders don’t offer loans for more than a home is worth.
3. Assessed Value
The assessed value is the assigned dollar value of your home that local county tax assessors use to determine property taxes. This amount is calculated by utilizing various factors, such as the appraised value and fair market value, as well as tax exemptions, home improvements, and whether you generate income from the property.
Home Appraisal Checklist: 4 Ways to Estimate Your Home’s Value
Curious about how much your home might be worth? Discover four ways that you and your agent can estimate your home’s value before putting it on the market below.
1. Use Online Valuation Tools
As you begin the selling process, one of the first things on your home appraisal checklist should be using online valuation tools. These tools are fast and easy to use, giving you a general idea of how much your home may be worth. However, it is important to keep in mind that they don’t consider other factors that can affect a home’s value, such as renovations and local market conditions. Because these resources may not always be 100% accurate, they are only one piece of the puzzle if you’re considering selling your home.
Click here to use our free online home valuation tool and discover how various factors like location, size, condition, and more will affect your property’s value.
2. Evaluate Comparable Properties
After using online valuation tools, another common way to calculate the value of your home is to do your research and evaluate comparable properties. Otherwise known as “comps,” this option involves researching recent sales prices of comparable homes in your area to estimate how much your home may be worth.
For example, it is safe to assume that two homes in the same location with similar square footage, bedrooms, bathrooms, and other features would sell for approximately the same price. Keep in mind, however, that no two properties are exactly the same. As always, it is also important to account for other factors that can affect a home’s value, such as features, upgrades, and overall condition.
3. Request a Comparative Market Analysis (CMA)
If the thought of evaluating comparable properties yourself seems daunting, then it’s time to call in the professionals! Your real estate agent will perform a comparative market analysis to determine how much your home is worth. Although CMA reports can vary in length, they will typically contain the following data: active listings, pending listings, sold listings, expired listings, and withdrawn or canceled listings. Because these reports use multiple data points to develop a valuation, you’ll receive a much more accurate estimate than what you could do on your own.
4. Hire a Professional Appraiser
Another key component to determining your home’s value is getting a professional appraisal. An appraiser will come to your home and provide you with a valuation based not only on comps, but also on the condition, features, upgrades, and other factors specific to your home. This option gives you the most accurate valuation since it takes a comprehensive look at your property from the inside out.
While this method is one of the most credible options on the home appraisal checklist, it is also one of the most expensive ways to estimate your home’s value. Appraisal fees will vary, but you can typically expect to pay anywhere between $300 to $500, depending on where you live.
Selling Your Home in the Carolinas With The Redbud Group
Ultimately, knowing your home’s value allows you to set the best price
for your home once it is listed. While it is possible to utilize online valuation tools or evaluate comparable properties yourself, we recommend seeking assistance from an industry expert, such as an appraiser or a real estate agent. There are many benefits of hiring a REALTOR® to sell your home
, and determining its value is only one of them!
Here at The Redbud Group, we want to make your entire selling experience as easy and stress-free as possible. To help you get started, we offer a free home valuation tool
that will give you an estimate of how much your home may be worth. When you work with us, one of our trained and experienced agents will perform a comparative market analysis to determine the most accurate valuation of your home.
Click the button below to get in touch with our team
and further discuss everything that we can do for you throughout the entire selling process — from calculating the value of your home to ultimately helping you sell it fast!