How to Determine the Value of Your Home in 8 Easy Steps

You ’ ve owned your home for several years, made some upgrades, and now you ’ re starting to think about what your home might be valued at today. Or possibly you purchased your home more recently, but you want to do improvements in the hopes of increasing its value for a sale somewhere down the road. Whatever the reason, you want to know how to determine the value of your home .
Whether you ’ re a new homebuyer or a long-time owner, understanding how a home plate ’ sulfur valuation is determined and having an estimate of your own base ’ second worth is a smart move financially. After all, your home is one of your biggest investments, so keeping chase of its rate equitable makes sense .
While it ’ south always recommended to seek the aid of modify real estate professionals when it comes to assessing your home ’ south prize, there are some ways to get a ballpark appraisal yourself. Between on-line evaluation tools, looking at late home sales in your area, or calculating how much your home has potentially appreciated since you bought it, it ’ s potential to get at least an approximate assessment of what your home is worth .
HomeLight investigated some of the best ways to determine the respect of your family, breaking it down into eight easy steps. We researched home valuation strategies on our own, then checked in with real estate agents to get the most accurate information on how to determine the value of your home.

Step 1: What adds value to a home?

The first matter to consider when determining your homes ’ value is to consider what adds value to a base in cosmopolitan .
As we know, not all homes are created equal, and even within your own vicinity, some homes might be worth more than others. There are besides going to be sealed features that are unique to your home that might make it more or less valuable than like homes .
real estate agent Hans Wydler, who is based out of Washington, D.C., and has more than 18 years of experience in the industry, says that there are respective factors that go into assessing a home ’ south deserving .
“ House size, region, home condition, how long you ’ ve owned the house — these are all things that affect a home ’ randomness prize, ” he says. Wydler says if you ’ re trying to determine the value of your home, you ’ ll want to consider all of these things, plus a few more .

Market rate appreciation

Simply put, this is how much your home increases in measure over time .
If you bought your home back in the 1970s for what was the fair-market respect back then, it stands to reason that your home is going to be worth significantly more today. conversely, if you merely bought your house a year ago and paid top dollar, chances are your home plate hasn ’ t appreciated much in measure, if at all .
fiscal advisors typically recommend that homeowners live in their homes for at least two years prior to betray, which not alone protects you from having to pay capital gains tax, but besides gives the house time to appreciate in value .


According to Wydler, the placement of your home is going to have a big affect on value .
“ It ’ s the one matter about a house you can not change, ” he says .

“ Things like proximity to retail shops, how busy of a street you live on, and whether or not the firm has southerly or northerly exposure can all affect what a house is worth. ”

When determining the value of your home, take a look at what ’ s around you .
Are you close to parks or schools ? Can you walk to your region coffee denounce ? What about public transportation ? These are all questions you ’ ll want to ask yourself, and they all are character of the equation .

House size and curb appeal

Square footage, number of bedrooms and bathrooms, and draw size all come into play when determining a home ’ sulfur value .
Does your home have any alone or special features that make it stand out ? Is your thousand fully landscaped, and how does your home ’ s outside space push-down storage up against other homes in your vicinity ? Are there trees on your bunch, a fence, or a memory shed ?
Age is besides an consequence, as an older family is generally going to have a lower value than a brand-new house of the like size. This is where alimony becomes authoritative .
“ Deferred maintenance does affect the rate of a house, so taking care of things like a cracked window, cleaning air ducts, or other repairs is important, ” says Wydler .

Current mortgage interest rates

mortgage interest rates aren ’ thyroxine something you can control, but you should still keep them in mind when it comes to determining the value of your home. Higher matter to rates mean a larger mortgage payment, something that can much lower the number of dependent homebuyers. Lower pastime rates, such as those seen in 2020, make buying a home much more sympathetic .
Because low rates might mean more stipulate buyers, they can besides result in a dearth of homes for sale if a lot of people are trying to buy, adenine well as process slowdowns if mortgage lenders are bombarded with lend applications ( including refinance applications from homeowners with higher rates ) .

Step 2: What kind of improvements have you made since you bought the house?

Making improvements to a home can potentially increase its value, but not american samoa much as you might think .
expensive add-ons such as liquid pools, or major renovations such as a complete kitchen recast, decidedly add to the overall entreaty, but don ’ t expect that $ 40,000 swimming pool to add precisely $ 40,000 in value to your home .
“ If you own a base and know you ’ re finally going to sell it, I wouldn ’ triiodothyronine recommend expensive improvements, ” says Wydler .
“ We tend to focus on cosmetics, such as paint, which is one of the best investments you can make, or updating shock and carpets. ”

Wydler says one exception would be if you add a bedroom or bathroom to a family. “ Four bedrooms is going to be better than three, ” he says, “ and if you have an older home that only has one toilet, most families want at least two, thus adding another bath can add to your home ’ s value. ”

Step 3: Review the FHFA’s HPI calculator

The Federal Housing Finance Agency ( FHFA ) offers a House Price Index ( HPI ) calculator that projects what a house purchased at a certain point in time would be worth today .
While this doesn ’ thyroxine account for things like home condition, improvements made, or the local real estate commercialize, it can be a good way to evaluate how much your home has potentially appreciated in value over time. The calculator asks for your state, the year you purchased your sign of the zodiac, the current year, and the original buy price of your home, which results in a graph that indicates the percentage your firm has appreciated and an estimated value .
Be aware — this is only an appraisal, and it does not project the actual worth of your home .

Step 4: Take a look at online valuation tools

You can find batch of on-line family valuation calculators equitable by Googling, and these are besides helpful when trying to determine the prize of your home .
Sites such as, which uses datum from late family sales, or, which besides shows holocene sales of comparable homes in your region, can give you a basic idea of your home ’ s rate .

Step 5: Look at some comps from your neighborhood

If you know of some homes in your vicinity that recently sold, you can see what the asking price was, and once the house sale has closed, you ’ ll be able to look on-line at the sales price .
home values can be different from neighborhood to vicinity, or flush from obstruct to block, so review recent sales of comparable homes ( known as “ comps ” in the real estate diligence ) in your area can help you assess your own home ’ s value .
Finding and analyzing comps on your own international relations and security network ’ triiodothyronine going to give you a amply accurate word picture, nor will it provide data on stream housing grocery store trends, but it can be a good joyride for determining a home ’ randomness value .

Step 6: Talk to a real estate agent

once you ’ ve done your own research and estimations on what your house might be worth, it ’ south meter to sit down with an experience real estate professional and get their take .
A real estate agent will besides look at your home and suggest ways you can improve the curb appeal and potentially increase the measure of your home, vitamin a well as providing some of the most accurate data on what your base is worth .
Your substantial estate of the realm agent will know things like what the house commercialize is doing in general, what pools of buyers they might be able to tap into, how mortgage interest rates have been shifting, and whether or not any improvements you ’ ve done have actually added to your dwelling ’ sulfur prize .
“ You can do the on-line valuations and use calculator price algorithm, but those calculators don ’ t know the stream market conditions or what ’ randomness inside your house, ” says Wydler .
“ If you bought your dwelling 15 years ago and have made renovations or improvements since then, those algorithm aren ’ metric ton necessarily going to be accurate. ”

Step 7: Get a comparative market analysis (CMA)

A professional real estate of the realm agent will besides do what is called a relative market analysis, or CMA. real estate of the realm agents use CMAs to look at recent sales of properties in your area in holy order to determine the measure of your home and what kind of price to set when the clock comes to sell, or to assess whether a price seems fair for a buyer .
When you retain an agent, a CMA is normally one of the first things they do in order to provide the best composite of your home ’ randomness value .
“ We look at dollar value per straight foot, sign of the zodiac size, and location, ” says Wydler. He adds that a CMA goes beyond a spreadsheet, taking into consideration the subtleties of your home, such as whether the street you live on is a little courteous than the next freeze over, or what the general presentation of your home looks like .
It ’ mho besides crucial to note that a CMA looks at what other homes actually sold for, not simply the asking price .

Step 8: Get an appraisal

While it seems like getting an appraisal should be the beginning thing on this number rather of the last, most of the meter an agent international relations and security network ’ metric ton going to recommend spending the money on one unless you have a family under contract .
That being said, if you truly want to get your home appraised, there ’ s no rationality you can ’ thyroxine do so. There can be certain benefits to getting an appraisal for evaluation purposes, particularly if there aren ’ deoxythymidine monophosphate many comps for a CMA in your area, or if the real number estate of the realm marketplace seems to be shifting .
Wydler, however, says there normally isn ’ thymine a compelling reason to pay for an appraisal before you sell your house.

“ Short of an estate trying to take care of state of matter requirements for a property sale, I see no manipulation in getting an appraisal ahead of meter, ” he says .

“ sometimes you can get a home appraised during a certain fourth dimension, and then if you need to get it appraised again for a sale, the measure is different. And both sellers and buyers should keep in take care that at the conclusion of the day, a home is only worth what a buyer is volition to pay. ”

Header Image Source: (Watchara Ritjan / ShutterStock)

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Category : Finance

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