The past few years have come with startling changes when it comes to home values. Prices are shifting rapidly and dramatically, leaving many homeowners with questions about the current value of their homes. Fortunately, getting a reasonable estimate isn’t overly challenging. If you’re trying to figure out how to find out the market value of your home, here are some places to look.
Review Municipal Property Value Data
Property value statements from municipal governments are used as a basis for property taxes. Since most aim to ensure the current value of your home is used for those calculations, looking at municipal property value data can give you insights into the market value of your home.
In most cases, this information is available through either a county or municipal auditor website. Generally, it’s considered a public record, so you can use the online search feature on that site to look up the data for your house with relative ease.
Using this approach is particularly worthwhile if your property was recently reassessed. However, if your taxable home value hasn’t been updated within the past year, this should only serve as a starting point. Some municipalities only update a specific property’s value every two to three years, so keep that in mind while you’re conducting any research.
It’s also important to note that these assessments may not reflect the market value of your home currently. They are usually only updated once every few years, and they often don’t factor in aspects like curb appeal, buyer demand, time of year, and other details that do matter if you actually sell. Still, it’s easy information to get and review, so it’s worth doing.
Use a Home Value Estimator
Home value estimators are tools that are commonly available through specific real estate websites. One classic example is the Zillow Zestimate, which aims to provide you with a rough idea of what your home could sell for if you listed it today. There’s also the Redfin Home Value Estimator, Realtor.com My Home, and several others that all work similarly.
Generally, these calculators work by comparing your house to recent sales and listings in your local area, known as comparables or comps. That allows the site to estimate how much you could potentially sell for based on pricing in your local area.
One issue with these is that they base their calculations on a limited amount of data. Usually, these sites are aware of the general state of your house, such as the square footage, number of bedrooms, number of bathrooms, and some material choices. However, they aren’t fully aware of any condition issues. Additionally, if you’ve recently updated your property, they may not account for those changes.
Another potential problem is that the comps used for comparisons may not be solid choices. While they’re usually physically close to your property, the calculator may not be able to account for a nearby property that’s technically part of a different neighborhood or school district or has other location-related advantages or disadvantages that aren’t immediately clear to someone not living in the area.
Every Site Uses A Different Formula
Further, every site with a home value estimator uses a different formula. As a result, the values can vary drastically from one website to the next. Since that’s the case, it’s wise to use several if you want to get a better estimate. Additionally, look at any comps to see if your home’s condition is similar, better, or worse, letting you determine if the value may be incorrect based on that information.
Research Comps in Your Area
While home value estimators do use comps to help determine the potential market value of your home, they don’t always select the best properties. As a result, you may get a more accurate estimate by researching comps in your area on your own. That allows you to ensure that the houses you include in the calculations are genuinely strong matches based on size, features, and location nuances that the automated estimators may overlook.
Ideally, you want to find at least three homes that recently sold to use for your estimate. Ideally, they should be as close to the same size as possible, including the house and lot. Having the same number of bedrooms and bathrooms is beneficial, as well as fixtures and finishes that align with yours. Additionally, make sure they are nearby, in the same neighborhood, and have as many location-based benefits and drawbacks as your property.
Request a Comparative Market Analysis
If you’re a potential seller, many real estate professionals will prepare a comparative market analysis to estimate your home value for free. By requesting one from a local agent that’s familiar with your specific area, they’ll typically use comps that align closely with your house. Plus, you can speak with them directly about any unique features relating to your property, which could make the final figure more accurate.
In some cases, you may want to request a free comparative market analysis from several agents. Ultimately, each one might use a unique approach, proprietary formula, or different comps. By getting a few reports, you can see if the estimates are generally similar, which could mean the data is more accurate overall.
Get a Formal, Professional Appraisal
If you’re okay paying a little money to get an estimate of the market value of your home, hiring a professional appraiser could be a solid choice. During the appraisal, the appraiser will examine the interior and exterior of your home as a starting point, allowing them to get a full understanding of its condition. Then, they search for comps based on what they’ve learned.
In some cases, these reports are the most accurate. The appraiser doesn’t benefit from whether you choose to sell your home or not, removing a factor that may influence real estate agents who perform a comparative market analysis.
As a result, their opinion may be more objective, though that isn’t always the case. Still, when combined with data from other research into the market value of your home, it could help you determine a realistic figure with greater ease.
Have you ever researched the market value of your home? If so, was the information accurate overall? Do you have any tips that could help someone else find out the market value of their home? Share your thoughts in the comments below.
Read More:
- 6 Ways to Save Money When Selling Your House
- Use These Tips to Pass Your House to Your Heirs Tax-Free
- 6 Tips for Cutting Costs When Building a House
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Tamila McDonald is a U.S. Army veteran with 20 years of service, including five years as a military financial advisor. After retiring from the Army, she spent eight years as an AFCPE-certified personal financial advisor for wounded warriors and their families. Now she writes about personal finance and benefits programs for numerous financial websites.
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