If you’re curious about how property experts value homes and want to know how to find the value of your home, continue reading in order to discover some of the key factors which influence home valuations.
As there are numerous factors such as your home’s location, your property’s square footage and the current condition of your property which you should take into account if you want to find my home value. Finding out how to correctly assess your home’s value is important if you plan to place your home on the market in the next few years or want to work on increasing your home’s value.
How is home value determined? Homes in safe, desirable areas typically have higher values. For this reason, many property investors try to purchase homes in up and coming neighborhoods which will increase in value.
If your home is in an area which boasts scenic views or is within walking distance of a wide variety of shops, schools and public amenities, it’s highly likely that your property will be worth more, than similar sized homes in less desirable areas. This is especially true if your neighborhood is located close to your city’s downtown or has access to a fast and efficient public transportation system, as homes that are centrally located are always in high demand.
2. Real Estate Comps
One way that most professionals get a fair idea of your home’s current value is to look at the recent selling prices of comparable homes in your neighborhood. In real estate terms, these homes are called “comps.”
For example, if three houses in your street which have the same number of bedrooms as your house, have sold between $600,000 and $750,000, it’s likely that your home will be valued somewhere in that range unless there are exceptional differences between it and all of the other houses (or unless something huge has happened to the local housing market in the past few months).
So if you were wondering how to find the market value of your home, it’s a great idea to find out the selling prices of homes which have been sold in your neighborhood in the past 12 months.
3. Inhabitable Square Footage
If you want to know how to find the value of my home, it almost goes without saying that the larger your home is, the higher it will be valued as potential home buyers and property investors are willing to pay a premium for space.
Many house hunters are interested in purchasing properties which boast at least three bedrooms and two bathrooms. Modern home buyers also tend to look for properties which offer en-suite bathrooms, walk-in closets, spacious lounges, guest rooms and home offices. So the larger your home is, the higher you can expect your home’s appraised value to be.
4. Size of the Lot
In valuing your property, experts will take into account the value of the land which your property is built on and the value of your home itself. If you’re curious about how to find out the land value of a property (especially one in which there is no structure), you may want to ask a third party for an independent valuation of your land. However, you may be able to find out the current valuation of your land for free online, depending on the area which you live in.
5. Updates You Have Made
If you want to get an accurate idea of the value of your home, keep in mind that the better condition your home is in, the higher value it will have. So if you want to significantly increase your home’s value, it’s a great idea to renovate your home to keep your home up to date. For example, if your kitchen is separated from your dining room and lounge, you may want to knock down a few walls in order to create a contemporary open plan living and dining area.
Keep in mind, however, not all updates are equal in value. Generally, bathroom and kitchen updates will add more value to your house in the long-run than updates to other parts of the house.
Additionally, it is important to realize that when it comes to a home’s value, there is such a thing as being too updated. In real estate terms, this is called “over-improving” a property. Generally, you want a house to have nice updates that are in line with its location.
One important factor that determines the value of a home is amenities. For single-family homes, this can mean having a two-car garage instead of a one-car garage (or no garage at all). For condos, villas, townhouses and single-family homes in gated communities, amenities can include gyms, tennis courts, pools and even community restaurants.
7. Overall Housing Market
Another key factor which property experts take into account when estimating the value of properties is the current overall housing market.
At any given point in time, the housing market will either favor sellers or buyers, depending on the current supply of homes and the current demand for homes.
Generally, when the number of properties which are currently on the market is less than the current demand for properties, property prices will skyrocket. However, when there are more available properties than potential home buyers the value of properties will decrease.
Remember that the housing market can also be influenced by government policies which can be used to try and regulate the housing market. For example, in order to increase demand for homes, your local or state governments may introduce temporary tax incentives for investors, first-time home buyers, etc. These and other types of government policies can have a big effect on the overall housing market and should not be discounted when it comes to assessing a home’s potential value.
If you’ve been searching how to find the value of my home, make sure you pay attention to all of the key factors listed above in order to find out how much your property is currently worth. Finding out how much your property is worth is critical if you’re interested in listing your property for sale in the near future or are interested in renovating your home in order to increase its value.
If you want to know how to find assessed value of property, you have two options, you can use online valuation tools to try and estimate how much your house is worth or you can choose to hire the services of a reputable appraiser.