What is Your Home Worth?

home value estimator

Accurately evaluating the worth of a home may be both an art and a science. An accurate value estimate must take into account dozens of variables in addition to bedrooms, bathrooms, and square footage.

Using similar active, pending, and sold homes as a basis for assessing value necessitates a thorough examination of several properties. Lot size, house condition, upgrades, floor design, living space, construction, and location are all important factors to consider.

In addition, a thorough examination of local market trends, interest rates, foreclosed homes, zoning, taxes, and seasonal price variations is required. All of these factors have a significant part in determining the value of a home. There is currently no automated tool that can account for all of these variables. This is why it is critical to hire a professional REALTOR® with the necessary expertise and experience.

How to Find Out How Much Your House Is Worth

Our free home value estimator tool allows you to receive a general price estimate for your home quickly and easily. The program calculates a market price for your home based on adjacent active, pending, and sold listings from the Multiple Listing Service and county tax records. Simply enter your contact information and the email address where you’d like the report to be sent after validating your property address.

Factors That Influence a Property’s Value

 

factors that impact a property's valueThere are numerous elements that influence the value of your property, some of which you can influence and others which you cannot. The following is a list of factors that influence the final value of your home.

These characteristics are based on homes that are meant for owner occupiers and do not reflect the highest and best use value (such as a developer re-zoning real estate for another type of use).

Comparable Property Sales: The sale price of similar homes in your region is usually the best indicator of how much your home is worth. Recent real estate transactions reveal what purchasers are prepared to pay for homes in the neighborhood, as well as what appraisers believe those homes are worth. Adjustments are done to compensate for differences in amenities, features, size, and other factors when comparing comparable transactions. Simply take a glance around your neighborhood to discover what other houses have that yours does not, and vice versa.

Home Size / Upgrades / Condition: Living space is a fundamental metric by which most properties are judged, and it is on this that an appraiser will base much of their calculations. A property that is the right size for the community (conforming to neighboring houses) will be priced in line with the surrounding real estate, but one that is too large and has considerable upgrades may be priced out of the neighborhood and lose value based on the surrounding properties. Naturally, homes with superior upgrades and in excellent condition sell for more per square foot than comparable sized properties with no upgrades or in poor condition.

Schools: The quality of public schools in your zoned school district is an important factor in determining the value of your home. Because every parent wants the best for their children, access to a top-notch education appears to be at the top of the priority list for buyers with children. Even purchasers without children understand the importance of a good school system when it comes to a home’s resale value.

Location: Where your property is located is a crucial selling element for many purchasers in East Texas, as it is in many other locations, because it may have a significant impact on their quality of life. Parks, shopping, dining, and entertainment are all important selling points that influence what buyers are willing to spend for a home. Homes in desirable areas are in higher demand and normally sell quickly, helping to sustain values and spur price growth.

Neighborhood: Even before they walk through the front door, the appearance of a neighborhood can have a significant impact on a buyer’s view of your house and what they are willing to pay for it. A safe and well-kept neighborhood will entice purchasers in, whereas a hazardous and poorly-kept neighborhood would have them seeking for the fastest route out. A depressed neighborhood will have lower values, whereas a prosperous community will have higher prices.

Lot Size & Type: The size and type of the lot on which your home is built has an impact on its final value. In general, the bigger the better, however this isn’t always the case. Homes on level lots that are private, nicely manicured, waterfront, or have other vistas sell for more than those on an extreme slope, backing up to power lines or major highways, or that are severely exposed.

What Are the Characteristics of a Good Comparable Property?

The key to calculating your home’s genuine market value is to find the suitable comparable properties (comps). Finding strong comparable sales comes down to identifying the homes that are the most similar to your house. The greatest comparables are those that have recently sold in your region and are of similar style and size. Houses in the same primary school district are preferable; the closer they are, the better.

Look for houses built that are similar to yours in terms of style, size, age, number of beds/baths, construction materials, and lot size. You should also examine additions and amenities, as these can significantly increase the value of a home. Consider the date of closing (the more recent the better), seller contributions toward the buyer’s closing expenses, and whether the buyer paid cash or financed the transaction when comparing recent comparable sales.

The Price and Value Difference

home price vs valueIn general, real estate agents representing sellers are more concerned with determining the best price for their listings than with determining the worth. The best price is usually the one that produces the finest offer in the quickest amount of time.

In a hot market, buyers may be ready to pay more for a home than it is worth, and agents will take advantage of this to the benefit of their customers (sellers).

Value, on the other hand, necessitates a thorough examination of local market trends, comparable sales, replacement cost, and the assessment of highest and best usage. Because determining a home’s genuine value is so difficult, you’ll need to employ a top-notch appraiser with plenty of experience appraising similar homes in your area. Obviously, engaging an appraiser requires money; depending on the type of property, it might cost as much as $350 or more.

What Is a CMA?

You’ve probably heard the abbreviation CMA if you’ve ever checked home values with a REALTOR®. A CMA, or comparative market analysis, is the process of determining what real estate should sell for based on recent sales and local market patterns in its most basic form. A CMA is a valuation of similar active, pending, and sold properties that is usually completed by a real estate agent prior to listing a home for sale. To account for discrepancies between similar properties and the subject property, the sale price of comparable properties can be changed. Once you’ve done this for several comparable properties, a price trend should emerge.

Furthermore, some agents prefer to average the adjusted prices of comparable homes, giving each one a different weight based on its similarity to the subject property. Because there is no set technique for conducting a CMA, the accuracy and level of detail will differ from one agent to the next. It’s also worth noting that a CMA is not the same as an appraisal.

Are Automated Valuations Accurate?

how accurate are computer valuationsSimply put… not very accurate. Do you have any doubts? Check out Zillow’s own statistics on their website to see how accurate their famed Zestimate home valuation tool is.

Despite having a massive database of properties and real estate data, they still lack a 100% accurate house value estimate. But consider this: How might a computer algorithm account for all of the above mentioned factors that influence real estate value?

To compute accurately, some things just require the knowledge and judgement of a trained professional (a human one). To predict general price trends, most online house appraisal calculators simply depend on local sales statistics and public real estate information. Unfortunately, a large number of people rely largely on these online house value estimators, which can be an expensive mistake.

Finding a rough price range for your home will help you determine how much equity you’ve accumulated (selling price minus mortgage loan(s) amount); but keep in mind that it won’t be exact. Perhaps in the future, robots will visit each home to measure and analyze the property in the same way that a qualified professional would, but for now, stick with a human house worth estimate.

Why Is It Important to Verify Public Data?

With an increasing number of buyers and sellers using the internet to search for and research real estate sales on their own, it’s more crucial than ever to double-check your property’s details. Public data, such as real estate tax records, is frequently inaccurate. Hundreds of websites, including real estate home value estimator tools on sites like Zillow, may use this information. Banks, appraisers, agents, investors, utility providers, and others use public real estate records, so you’ll want to be sure they’re accurate.

When public data is wrong, this is what can happen to a home’s estimated market worth. Let’s say your square footage is inaccurate by merely 100 square feet according to public sources. To help generate a value for your home, several property worth estimator software use the average price per square foot of houses in the local area. With homes selling for $100+ per square foot, your home’s estimated worth could be tens of thousands of dollars wrong! So, especially before offering your home for sale, take the time to study and verify any public data for your property.

Included in Our Home Value Report

researching home value trendsHome value reports provide an estimated property value as well as a range of possible values. The confidence level, which is decided by the availability of public real estate data and the number of comparable residences sold in the immediate region, affects the value range.

The reports also feature information such as historical property valuation, sale history, mortgage history, market activity, a real estate value heat map for the neighborhood, and more.

Each free analysis also includes a wealth of information about the property in question, as well as comparable homes and market trends in the area. The homeowner can use this information to assess the local market conditions and neighboring comparable sales, both of which have an impact on the value of real estate.

Important Notes on the Report

Home value reports are supplied to you on a “as is” and “as available” basis and comprise data and information that is publicly available and/or licensed from third parties. The data has not been validated or is not guaranteed. The report, as well as the estimated worth of a property, are not appraisals.

Any valuation in the report was calculated using proprietary computer software that combines publicly accessible real estate information with specific proprietary data to arrive at an estimate of a property’s value. The Maxwell Team and its information providers are not responsible for any claim or loss resulting from the report’s content, including any errors or omissions.

⇒ REQUEST YOUR HOME VALUE REPORT  ⇐