What Is My Home Worth?
Jan 10, 2022
What's My Home Worth?
If you're considering selling your house or refinancing your mortgage, you're probably asking yourself this question: what is my home worth?
Knowing the value of your home is important, but before you figure out what your home is worth, it's good to know the factors that influence that figure. The local housing market, tax rates, the economy, any improvements or upgrades that have been done or are needed, and your home's age, condition, and size all impact your home's current worth.
Let's look at some common ways to determine a home's value.
USE ONLINE HOME VALUE ESTIMATORS
These websites use information you provide and information from public records to estimate your home's worth. Home value estimators take into consideration the square footage of your house, the number of rooms, and the location.
While many of these tools are free and simple to use, they can't quite do it all. Online home value estimators won't take into consideration the kind of things a person can, like home upgrades or trends among your city.
Still, these tools are a good place to start to give you an idea of your home's worth, but aren't the only estimate you should take into consideration.
GET A COMPARATIVE MARKET ANALYSIS
Another way to find your home's value is to get a comparative market analysis from a real estate agent.
Part of what real estate agents do to form a comparative market analysis is look at similar homes in the area that have recently sold. Real estate agents also consider your home's size, age, condition, and any recent upgrades that may have increased its value. They use that data and their own knowledge of the local housing market to provide you with an estimate of your home's worth.
Results of a comparative market analysis are considered the market value. It's subjective because it's based on what a buyer would be willing to pay at that time.
Some real estate agents, like ours at Orizon Real Estate, will offer a comparative market analysis for free!
HIRE A PROFESSIONAL APPRAISER
For a professional opinion, you can hire an appraiser to estimate your home's value. Appraisals are used to make sure a lender doesn't give a borrower more money than a home is worth, but can be useful for you as the homeowner as well.
Appraisers assess the region, city, and neighborhood your home is in and evaluate the property. Appraisers consider the number of bedrooms, the square footage, the land, and if your home needs upgrades.
Like a comparative market analysis, appraisers also look at the sales and listings of similar properties in your market. The appraiser combines their evaluations to form their estimate of the value of the home.
The appraised value is an objective estimate of what an appraiser thinks the property is worth.
In Indiana, home appraisals typically cost between $325 and $405.
USE THE FHFA HOUSE PRICE INDEX CALCULATOR
The Federal Housing Finance Agency's House Price Index Calculator offers another approach. This tool uses decades worth of mortgage data to estimate the worth of homes in your state or metropolitan area.
The Price Index Calculator gives you an idea what your house is worth if it has appreciated at the average appreciation rate of all homes in the area, but it doesn't adjust for inflation and won't give you an estimate for your home specifically.
ORIZON IS HERE TO HELP
Thinking about selling your home? Any of our agents at Orizon Real Estate would be happy to provide you with a professional market analysis for free so you can know the current value of your home.
Call Orizon Real Estate at 260-248-8961 to speak with one of our agents today!