How to Determine Your Home’s Value
So your home is your castle, but that doesn’t mean it is necessarily worth royal prices. While it is probably the biggest single investment you have ever made, it may not even be worth what you originally paid for it. Home values can be very difficult for homeowners to identify, because they often mix the value of a house with the property value.
In the USA, the reality of home values is that the physical structure – the house – which possibly depreciates over time. If your home is going to increase in value, it’s the property value in terms of the land that will grow.
Top Tips to Help you Determine Your Home’s Value
- Find out home values for houses that have sold in your neighborhood in the past six months. You can identify asking prices in old real estate advertisements, and the local tax assessor’s office should be able to provide data on assessed home values. But the easiest (and usually most reliable) way to find out if homes listed for sale actually sold, and for how much, is to contact a reputable agent who has easy access to this property value information.
- Be sure to compare houses that are similar to your home in terms of size, accommodation, and location. For example, if your home is on a busy street, don’t compare it with a house that is nestled at the end of a quiet dead-end road.
- To get an average sales price, total the sales prices of at least five comparable homes and divide by that number. This will give you a reasonably good indication of the value of a house.
- If you have spent money remodeling, this will increase the property value, and you can add a percentage of this spend onto the property value.
- Be aware that if a potential buyer likes your house but needs a mortgage to buy, the lender may want a professional appraisal.
Call me 704-439-5350 or email me Susan@HomeCarolinas.com and lets discuss the true value of your home in todays market!