Given the volatile real estate market that we’ve had in recent years, it’s only natural that you want to know what the true market value of your home is today. Meeting with an accredited real estate agent that specializes in your area is probably the best way to determine how much your house is worth. Real estate agents have access to private industry resources that can provide more complete information about recent sales in your area and comparable properties on the market to help you accurately arrive at a value for your home. Aside from meeting with a real estate agent to discuss your home’s market value, there are some additional ways that you can gain a better understanding of how much your house is worth, which include:
Review Your Property’s Most Recent Tax Bill
This bill should offer an assessed rate for your property, which is typically 80 to 90 percent of your property’s fair market value depending on which state you live in. So, assuming that the assessed value for your property is $80,000 and that the assessed rate is 80 percent of your property’s true market value, a more accurate value for your home is $100,000.
It’s important to note that this fair market value calculation is only an indication of what your home may sell for in a non-volatile real estate market. Unfortunately, the real estate market in recent years could be classified as anything but this. Also, the tax bill may not always account for improvements that have been made to your home (additional square footage, new roof, etc) that could positively impact your property’s market value. Therefore, while your property’s tax bill can provide you with an estimate of what your home is worth, it’s not always the most accurate way to value your home.
Take Note of Recent Sales in Your Neighborhood and Surrounding Area
Jot down the nearby comparable homes that have sold within the past 12 months and the prices that they sold for. This information is public record and can be found by visiting your county’s tax assessor website. You should also be able to use this website to find out the square footage and lot size of the sold properties as well as the number of bedrooms and bathrooms that each property has.
While this information is incredibly useful to know for determining your own home’s worth, your county’s tax assessor office may not always be the fastest at updating their database with this recent sale information. Many counties only update their websites with this information every 6 months.
Hire a Professional Property Appraiser to Determine Your Home’s Value
Even if you are not planning to sell your home in the immediate future, you can engage a residential property appraiser to provide you with a current value of your home. While this method will be much more accurate than looking at a tax bill and comparable sales in the area, you can expect to come out of pocket $500 or more for this information.
Determining Your Home’s Value
All in all, if you really want to determine how much your home is worth but are not ready to spend the money on an appraisal, meeting with a professional real estate agent that is familiar with your market is the best way to determine your home’s value. Your agent can also share with you some ways that you can improve your home’s market value, such as refinishing your floors or updating your kitchen. Please contact us today to learn more about how much your home is actually worth.