If you are buying or selling a house, it is important to get a clear assessment of the property’s market value. Determining the value allows you to put the right sale price on your home, avoid overpaying for a new house, and gain an accurate overview of your financial assets.
There are many tools and resources you can use to assess the value of your home. Utilize an online valuation tool to estimate your home’s market value, or for a deeper analysis, work with a real estate agent who knows the value of homes in your specific market. Discover how to determine your home’s market value and why it can give you an advantage when buying or selling.
What is “Market Value” in Real Estate?
In real estate terms, market value refers to the amount that a home is expected to sell in a normal housing market. The market value determines how much you pay in annual property taxes and affects your home’s equity, your refinancing options, how much you pay for a new home, and how much to list a property for when selling.
What Determines the Market Value of a Property?
The market value of a property is not determined by one easy method. The final determination is arrived at by considering real estate appraisal reports and recent comparable sales in the area.
- Home Appraisal
A licensed appraiser performs a home appraisal who conducts an inspection of a property and offers a professional opinion of what the home is worth. A buyer typically requests an appraisal before purchasing a home to secure a mortgage loan. A home appraisal takes into account a home’s overall appeal, structural conditions, comparable sales, and location in its valuation of the property. Your home’s appraisal value is an important tool in determining your home’s value, but it may differ from what people are willing to pay for it.
- Market Data
Market data is also referred to as comparable sales analysis. Typically, this is done by an experienced real estate agent familiar with property values in the same market that you are looking to buy or sell in. The agent will review recent comparable sales of homes in the same market and with similar features to determine your home’s value.
How to Find the Value of Your Home
There are several ways to go about finding the value of your home. Each method can give you insight into what your home is worth and paint a bigger picture of your financial health. To find the value of your home, seek the following resources.
- Online Tools
Online valuation tools provide an easy way to get an estimate of your home’s value. Although you’ll want a more specific valuation at some point during the buying or selling of your property, using an online tool is a great first step in gaining insight into your home’s market value. You can opt for a government tool like FHFA’s Housing Price Index Calculator for a general estimate or use a tool specific to the South Florida market to obtain an accurate valuation.
- Work With an Agent
For a more thorough evaluation of your home’s value, work with a real estate agent in the local market. Bryan Gold is an excellent resource in determining your home’s value through comparative market analysis in South Florida. He can provide you with his opinion on the value of your property based on years of experience in the local market and analytical tools that provide insights into what similar homes are selling for at the moment.
- Get a Professional Appraisal
You can also opt for a professional appraisal to obtain the monetary value of your home. If you are buying, this is usually part of the purchasing process, but you can choose to get an appraisal to price your home for sale accurately if you are selling. A home appraisal usually costs several hundred dollars; however, you may save yourself from losing out on money by pricing your home too low by having one done.
- Do Your Own Research
Another approach you can take to determining your home’s value is to do your own research. You can pull up list prices of homes in the same area and have the same characteristics as your home. Use MLS listing sites to find recent sale prices and aim to find at least three comparable sales to get the most accurate valuation. If you decide to research yourself, it is a good idea to contact a real estate agent who can verify the information you find.
Advantages to an Accurate Valuation of Your Home
When you take the time to find the value of your home, you give yourself several advantages in the housing market. Knowing the value of your property helps you to:
- Refinance, buy, or sell with an accurate value in mind
- Tap into the equity in your home
- Negotiate what you owe in property taxes and insurance
- Give you a clear picture of your financial assets
If you own a property or are looking to buy a home, it is important to get an accurate assessment of the home’s value, both by a professional appraiser and by obtaining comparable market analysis insights. Knowing your home’s value can save you money as you negotiate based on what the home is worth, and it can help you list your property at a fair price that fits in with current market conditions.
Get an Accurate Assessment
To gain a thorough assessment of what your home is worth, work with South Florida real estate agent Bryan Gold. Bryan has over ten years of experience in the South Florida market. He has the knowledge and resources available to give you the accurate market value of your home through comparative market analysis. If you are ready to buy or sell a property in South Florida, Bryan Gold is happy to help you through the entire real estate transaction.
Contact Bryan at bryan.gold@compass.com or (954) 464-3459 to discuss your real estate goals and find out how he can aid you in buying or selling your home.
