Posted On February 06, 2020
Your home has probably appreciated since you bought it, but do you know how much it’s worth? If you’re planning to sell your home this year, you want to list it at the right price. Significantly changing the price once its listed may be a red flag for potential buyers. You should consult with a Realtor or real estate agent before you list your home, to get their professional input. If you’re starting to do your research, here are some options for accurately estimating the value of your home.
Use Free Online Resources
There are numerous home valuation algorithms right at your fingertips. For example, Zillow’s Zestimate and Redfin’s Estimate provide estimates on homes based on public information like previous sale prices, tax assessments, and comparable properties. Keep in mind, this estimate is just that, an estimate, and will not be 100% accurate. Just like free credit reporting services can give you an estimate of your credit score but may differ from your actual FICO score.
Get a Free Comparative Market Analysis
A comparative market analysis or CMA is a compilation of data of similar neighboring homes. You can get a CMA from a local Realtor or real estate agent, even a buyer’s agent can provide this for you. CMAs may differ slightly depending on what properties the agent uses as comparisons. Additionally, each home is unique and neighboring homes may not have the same kitchen upgrade or finished basement you recently completed.
Visit Municipal Auditor’s Website
Auditors assess residential properties for tax purposes and publish this information online. This estimate is based on the objective taxable value of your home only and won’t account for subjective factors like how competitive your market is. Depending on what else is for sale in your area, you may be able to price your home higher than its taxable value.
Federal Housing Finance Agency (FHFA) House Price Calculator
The FHFA house price index calculator is used to estimate appreciation. To use this tool, you enter the purchase price of your home and the year you purchased it. The calculation is based on historical mortgage data from around the country and will give you an average estimate of your home’s price appreciation. This index will not reflect market value, but it will give you an idea of how much your home has appreciated.
If you’re interested in selling your home this year, or just researching your options, let us know. We can review how to get preapproved for a mortgage while selling your home and determining the best course of action for you to take.