Considering selling or refinancing your home? Then you’ve likely wondered what resource would help you determine the “value” of your home. Maybe you had an appraisal done a few years ago which resulted in one value, then you went online and found a whole range of different values. And yet your neighbor just sold for twice as much as you paid for your property. Where to start?
Appraisal Value is determined by a licensed appraiser using a detailed report. This is described as a “black and white” report. It is fact-based without taking into consideration as many outside variables as the market value. The appraiser uses
formulas to compare square footage, acreage and the number of bedrooms and baths, and almost always stays within a six-month timeframe when searching comparable sales. Because history has shown market conditions can change in just three months, a comparable sale that happened seven months ago is now out of date. When a buyer purchases a home using a mortgage, the lender will almost always require that the property appraises for the full sale price. This is important to consider when pricing your home.
Market Value is the value that your home would garner in today’s real estate market. A Realtor® can help you determine this number by studying the features and benefits of your home and comparing it to recent active, pending and settled properties in the same area. Factors that most heavily influence the market value of your home are:
- Location
- Condition
- Price
- Inventory
- State of economy
It’s best to consult two or three licensed Realtors to determine the market value of your home. Online property estimates are as “estimated” as you can get. They are based on algorithms which only use online data. The algorithm does not know if your property backs up to a busy road, if it has a state-of-the-art HVAC system or that the house across the street that sold for $100K less than the most recent sale was a foreclosure. For the most accurate assessment of your property value, contact a Realtor who is experienced and knowledgeable about your local real estate