It can be hard to determine the value of your home, especially if you're not familiar with the tools and techniques used to calculate the value of a home.
This article will introduce you to what contributes to the value of a home, the basics of house value estimation, teach you some of the tools that can help, and understand what professionals can help get an accurate value for your home.
What Contributes To The Value Of Your Home?
Knowing what contributes to the value of your home is one of the most common real estate questions from home sellers.
There are a number of factors that contribute to the value of a home, including size, location, condition, and amenities.
Below we will cover some of the most important factors that contribute to determining how much your house is worth!
Useable & Legal Square Footage
One of the most important factors in calculating the value of a home is usable & legal square footage.
The amount of usable & legal square footage helps determine the price that a home can potentially sell for, and is an important factor in determining a home's market value.
You might be asking yourself, what is legal square footage?
Legal square footage is the total area of a home that is considered usable and habitable, including both the living and sleeping areas.
For example, if a home has an unfinished basement, that space will not be included in the square footage calculation.
On the other hand, if the basement is finished and has proper forms of egress, it can be counted in the square footage calculation.
Location, Location, Location
When determining the value of a home, location is one of the most important factors to consider.
Location affects a home's price based on its proximity to amenities such as schools, parks, shopping centers, and public transit.
It is also important to take into account the area's crime rate, noise levels, and overall desirability.
Knowing these factors will help you determine how much your house is worth and can provide an accurate estimate of its value.
Overall Condition Of Your Home
The overall condition of your home is a key determinant of its value.
It is important to consider the structural integrity, insulation, and general maintenance of your home. If your home is in good condition and has had regular maintenance, it could make a significant difference in the price.
Popular areas of your home that help determine the overall condition of your home include the age of your roof, what type of exterior your home has, and the condition of your homes windows.
Upgrades & Amenities
When deciding how much your house is worth, it is important to consider the upgrades and amenities that have been added to the home over time.
These items can have a significant impact on the value of your home, adding thousands of dollars in value depending on the quality and scope of the upgrades.
In addition to increasing the value of your home, these amenities can also help it stand out from other similar houses in the area.
Ultimately, these factors can lead to a much higher sale price and a faster sale when marketing your house.
An example of upgrades and amenities playing a role in the value of a home, is when two houses are similar in square footage and location but one house has a gourmet kitchen and the other home has an outdated kitchen. While obvious, the home with the gourmet kitchen will have a higher value.
Tools To Help Determine The Value Of Your House
Determining the value of your house can be an overwhelming task, but with the right tools and professionals, it doesn't have to be.
There are a variety of online resources and tools available to help you determine the worth of your home. These resources can provide data on recent sales of similar homes in your area, giving you an estimate of your home's market value.
Below we will cover these tools so you can get a better understanding of how much your house is worth.
Online Valuation Estimates
With the evolution of online home valuation estimates, you can now quickly and easily get an estimate of your home’s worth from the comfort of your own home.
With a few clicks, you can get a better understanding of how much your house is worth and make better informed decisions when it comes to making financial decisions.
One of the most popular home valuation tools online is the "Zestimate" from Zillow.
Whether Zillow estimates are accurate or not, is quite a controversial topic in the real estate industry. Always remember that online valuation tools are estimates and should not be exclusively used when determining how much your house is worth.
Looking Up Recent Sales Online
It may be possible to get a rough estimate by looking up recent sales in your neighborhood. These are often referred to as "comps" in the real estate industry.
Online websites such as Zillow and Realtor.com offer tools to search for recently sold homes in your area, including price, square footage and other details.
Additionally, many local governments have online mapping programs with recent sale information available for public view.
Although it can be difficult to get an exact figure for your home's value, these online resources can provide a useful starting point for researching the value of your property.
What's Are The Best Ways To Get An Accurate Value Of Your House?
When looking to determine the value of your house, it is important to utilize reliable resources.
Below you'll learn about the best two ways to get an accurate value for your house!
Hire An Appraiser
If you're looking to determine the value of your home, hiring an appraiser is one of the best ways to get an accurate and professional estimate.
Appraisers are skilled professionals who are trained to evaluate the market value of a property.
They look at various factors such as the size, condition and location of your home and compare it to similar properties in the area.
An appraisal will give you a good idea of how much your house is worth so that you can make informed decisions about buying or selling your home.
Hire A Real Estate Professional
When attempting to determine the value of your home, it is wise to consult a real estate professional.
With their expertise and knowledge of the local market, they can provide an accurate estimate of your home's worth.
Realtors can also provide advice on how to best increase the value of your property through home improvement projects, renovations and other strategies.
Hiring a real estate professional is essential for accurately determining the value of your home.
How To Hire A Top Real Estate Professional
Hiring a top real estate professional can be a tricky task, but it is well worth making sure it's done properly!
In every real estate market across the world there are hundreds to thousands of licensed real estate professionals, but this does not mean they're all the same. It's important to understand what to expect from a real estate agent when selling a home!
Below are some tips to ensure you hire a top real estate professional that can help you determine how much your house is worth!
Know How To Properly Interview Real Estate Agents
When looking to find out how much your house is worth, it's important to properly interview potential real estate agents.
It's best to go in prepared with a list of questions for real estate agents that you need answers to, such as the agent's experience and qualifications as well as their knowledge of the local market.
Doing your research and having a clear idea of what you're looking for in an agent can help you find the right one for you.
Ask Family & Friends For Recommendations
When trying to determine the right real estate agent for you, it is wise to reach out to family and friends who may have gone through the process recently.
Ask them for recommendations on real estate agents or appraisers who can provide a professional assessment.
Request Examples Of How The Real Estate Agent Markets Their Listings
When looking for a real estate agent to help determine the value of your home, it is important to get a sense of how the agent will make your listing stand out from the competition!
Ask the agent for examples of their past listings and how they marketed them. Make sure to ask questions about their strategy, such as which platforms or outlets they used, what type of language they used in their ads, and what results they received from their efforts.
Knowing what marketing strategies a real estate agent is using can help ensure that your home gets the attention it deserves and that you get the best possible return on your investment.
Final Thoughts
Ultimately, determining how much your home is worth is a complex and nuanced process.
Using some of the tools that are provided online can help get a general idea of what your house is worth, however, to get the most accurate estimate of your home's value, it is best to consult with a professional appraiser or real estate agent.
With their expertise, you can feel confident that you are getting an accurate assessment of your property.
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