When you begin to consider reselling your home, it’s crucial to ask yourself “What is my home worth?” If you aren’t asking yourself this important question, you’re risking the loss of potential earnings from your home’s resale.
Hire a Professional Appraiser
One typically does not obtain a professional appraisal of their home until it is time to place it on the market as it is a general requirement from lenders. However, you can obtain a home appraisal at any time and it’s one of the most popular ways to evaluate your home due to the factors an appraiser considers.
Home appraisals not only take into account your home’s property but also the current market, the area your home is located, and any comparable properties in the same market.
Utilize Online Valuation Tools
For simple and quick results on the evaluation of your home, utilizing online valuation tools is your best bet. These tools will use public records on the history of the home and also comparable properties in the areas to help obtain a prediction on your home’s current value. However, it is important to note that these online tools have limited information and therefore, may not always provide you with the most accurate appraisal.
If you decide an online valuation tool best suits your needs, be sure to use one that includes a confidence score. When these sites provide you with a confidence score they are indicating how close they are to obtaining an accurate market value of your home. For example, a confidence score of 95% is estimating that the estimated value of your home they have provided you is within 5% of the home’s actual market value.
Obtain a Comparative Market Analysis
A comparative market analysis, or CMA, is when a local real estate agent obtains an evaluation of your home based on the current market in your area and the estimated value of your home. While this option may not be as accurate as a professional appraisal, it is definitely a great choice.
Many local real estate agents provide a free CMA however, they typically do so in hopes of becoming your selling agent.
Why You Need to Evaluate Your Home
Knowing what your home is valued at allows you to list your home at an appropriate price. Not only does the sale of your home benefit from obtaining an evaluation but many other factors are based on your home’s value such as property taxes, insurance premiums, refinancing, and home equity lines of credit.
If you are interested in getting the biggest bang for your buck and possibly saving a bit of money in the future, obtain a home evaluation now.