The value of your house is an important figure but it can fluctuate over time. Whether you want to move to another neighborhood or take another mortgage, it is quite critical to get a home value estimate. In the past real estate was a goldmine for investors and returns were almost guaranteed, however, this is not always true nowadays.
While the market has changed, there are still some people who are reaping from their investments. If you don’t know if your property has depreciated or appreciated, you may be constantly asking- what’s my house worth? Keep reading to understand how to value your house correctly.
Use Comparative Listings
In real estate, a common question is what’s my house worth? One of the most reliable tools to determine the prices are the comps. Basically, these are statistics for sold houses that share some features like size, amenities, and location with your home. A licensed realtor can access this tool but it is not obvious that you will select the correct match and read them in the right manner.
It is important to ensure you are checking the properties that have already been sold as opposed to looking at the listed houses similar to yours. It is easy to be tempted to concentrate on what other sellers demand for their homes but instead, focus on what the market is offering for such properties. When studying the selling prices, it is critical to note the date when the deal was closed. If the data was recorded a few months ago, you should incorporate the trends. For instance, if the prices have dropped by 5% over the last four months, you should apply more than that to any comparatives older than four months. If you use the most recent price you can find without making the adjustments, you are working with an estimate that may be far from the reality.
At times, people seeking to sell their homes tend to shun advice from experts simply because they have a predetermined number they can’t let go. If you are not ready to settle on another price and you are not under any pressure to sell the house, it is best to wait until the prices get better before asking what’s my house worth?
What’s my house worth? Consider an appraisal for your house
At times, some properties can exhibit a trend that goes against the market norms. Homeowners rely on realtors to put a price on their houses since these experts have extensive knowledge about properties that are selling at a given price in any neighborhood. But if you get an estimate from an appraiser who is conversant with properties in your neighborhood, you can end up saving time and increase the profits by setting the appropriate price early enough.
However, it is important to work with a partner who has a deep understanding of your area as well as your intentions when asking for an appraisal. Basically, you should ensure the appraiser can educate you by explaining the complexities involved. Before making your decision, talk to about three appraisers and convey your intentions. After the interaction, work with whoever is ready to commit to assisting you.
