How to Find the Value of your Home
Finding the value of your home- I know, I know, you may be tempted to use one of the more popular real estate sites out on the inter webs to find the value of your home. This is not a good way to get the true value of your home. I will do another post on this later, and discuss why not to use those sites, but for this post, I will give you some detail on the correct way to find the value.
There are two good ways. You could hire an appraiser which will cost you some money, or you can contact a real estate agent. Most real estate agents will provide you with the value of your home for free. Notice I said most, but not all. Using a real estate agent is probably the fastest way to get your homes “current” value.
Remember, the value of your home is driven by how much a potential buyer is willing to pay at a given time.
Real estate agents and appraisers both similar ways to find the value of your property which is a comparative market analysis. The comparative market analysis looks at three different things:
- Similar homes, in the same location, that have sold
- Similar homes, in the same location, that are currently under contract
- Similar homes, in the same location, that are currently for sale.
Out of these three, Similar homes, in the same location, that have sold is probably the most important.
Out of these three, Similar homes, in the same location, that are currently for sale, is the least important.
While real estate agents and appraisers use the comparative market analysis approach, they both do the analysis a bit differently.
So, if you want to find the ” current” value of your home, reach out to a real estate agent and ask for a free comparative market analysis. Remember, use the word free.