The real estate market is dynamic. Home values depend on a multitude of factors. A home can be worth more or less depending on how desirable it is for a particular buyer.
If you’re planning to refinance or sell your home, perhaps the first thing you need to consider is how much it’s worth. Unfortunately, getting an accurate estimate of your home’s value today takes some homework.
The best way to find house value is a professional house appraisal, but when you just need an accurate estimate of what your house is worth, there are many techniques you can follow.
One way to get a good idea of what your property is worth is to compare it to others in your neighborhood. Using websites like Zillow or Realtor.com can help you easily examine houses. These sites will show the past and current sales in your area. Using closed sales though is better to use when comparing since houses currently on the market could be selling for much less than the listing price.
When you analyze the homes around you, make sure you are comparing houses that are similar in square footage and the number of bedrooms. You also want to keep in mind the level of renovations done to your house and the ones you are comparing it to.
You could have the nicest house in a town, but if the area isn’t favorable, the value of it will go down. Being located in a desirable area will increase the value of your home. What makes an area desirable? Exceptional school districts make a neighborhood more sought-after. Also, being located near large bodies of water will drive up the market price of a house.
The current housing market’s prices are changing rapidly. What your home was worth a year ago is probably different than what it’s worth now. Keeping these things in mind can help you get a good idea of what your house is worth today.