Updated: Aug 28, 2020
Selling Your Home? Strategies For Estimating Its Value.
There are many necessary steps you need to take when selling your home, one of which is estimating its value. Besides giving you a concrete idea of offers you should consider, getting your house appraised can define your future property investment possibilities.
In this article, we’ll discuss the importance of estimating your house value and give you a few different tips on getting your home appraised.
Why You Need to Know the Price of Your House
There are many benefits of knowing the price of your house, even for folks who aren’t looking to sell their home. For instance, you’ll have more control over your taxes, insurance costs, and refinancing options.
Plus, you’ll also gain valuable insight as to how much borrowing power you have for your next big investment. After you estimate the price of your home, you’ll likely be thinking “how much can I borrow?” and you can simply use a borrowing power calculator accurately thanks to the newfound information.
How to Estimate the Value of Your Home
There are different steps you can take to estimate the value of your home. Before you get started, it’s always a good idea to start a cleaning spree and contact pest control if necessary. Once you’ve covered the cleaning, pests, and other elements, you can start estimating the true value of your home.
Look at Prices of Comparable Properties
The first thing you should look at is property prices in the area. Remember, the more similar the house, the better. Aim to find a house that has a similar location, bedroom count, and overall size in order to get a good idea of the comparable property prices.
Hire a Professional Property Appraiser
Bringing in a professional is always a great way to find out the price of your house. Professional property appraisers can give you an accurate estimate of the price range you should be considering. They can also provide the required documentation to potentially request higher loans as well as tax or insurance discounts.
Request a Broker Price Opinion and/or Competitive Market Analysis
You can choose to request a broker price opinion (BPO) or competitive market analysis (CMA), both of which can be provided by a local real estate agency. These are not as detailed as a professional appraisal but they usually come at little to no cost.
Despite the fact that they take slightly different elements into consideration, BPOs and CMAs are often used for listing purposes. For this reason, they’re ideal for families that want to sell their home.
Consider Additional Features
When comparing your house to other local properties, remember to include any additional features you’re added. Pools, decks, basement finishing, and other improvements can increase the value of your house, so make sure you consider them when you crunch numbers.
Keep Up with the Local Market
Comparing your home to similar properties is important, but you should also look at how much houses are actually selling for. Not only will you get an idea of how much homeowners in the area expect to get, but also the amount of money that buyers are willing to spend.
Use Online Appraisal Tools
Similarly to home loan repayment calculators, you can also employ online appraisal tools that give you an idea of the approximate value of your home.
Find a Reliable Financial Agent
Having a reliable financial agent by your side to guide you through every step of the way can make selling your house a breeze. That said, you should also pay special attention to your house appraisal and use all the tools you have to figure out a fair asking price.
You should keep the local market in mind and make sure you consider any additional features that can impact the value of your home. Online tools are a good start, but you should implement as many techniques as you can in order to make an informed decision.
At My Finance Agent we focus on delivering high-quality financial planning services that help you make the right choices. You can get in touch with us by giving us a call or visiting out financial planning page today.
Alex Morrison has been a SEO Expert in Melbourne for over 10 years. In this time he has worked with a range of businesses giving him an in depth understanding of many different industries including hom