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How to Determine the Value of Your Home (and Why It Matters!)

how to determine the value of your home

What’s my home worth?

This is a question that crosses the mind of most homeowners at some point, and for good reason. Currently, all indicators show that we are in a seller’s market.

But how to determine the value of your home is a conundrum for many. Price it too high and it will sit stagnant for months. Too low and you may unintentionally perform an act of charity.

So let us fill you in on how you can find out what your home is worth, and why you should care, even if you are not planning to sell any time soon.

Use Online Valuation Tools

As with most things today, it is possible to determine home value to some degree with online valuation tools.

They’re quick and easy to use. Simply plug in your property address and it can give you an estimated value.

They take out the legwork that was once needed for the average person to determine the value of your home. But we wouldn’t suggest using them for anything more than to get an idea.

Online tools don’t take into account things like any renovations or other unique selling points that may add value to your home. Therefore you could be missing out on a realistic idea of what it’s really worth.

FHFA House Price Index Calculator

For a more in-depth idea of how your property would perform, another option is the Federal Housing Financing Agency’s housing index.

As they have the data for all house sales, it is possible to gain an idea about what has happened to property prices over a sustained period of time.

This is great to figure out if your property should expect to go up in value now. Again, it isn’t our pick for the most accurate way to find out how to determine the value of your home.

Get a Comparative Market Analysis From a Local Realtor

Without a doubt, getting someone into and looking around it is the best way how to determine the value of your home.

A realtor will be able to perform what is known as a comparative market analysis (CMA), which will answer clearly any lingering doubts about your home value.

In doing a CMA, you will be tapping into your realtor’s knowledge of comparative prices and the current listing prices, as well as local inventory and how long comparative properties have taken to sell. These are things that no online comparison site can do.

In addition, their trained eyes are able to spot what makes your home special, and even advise on what you can improve if you are looking to sell further down the line.

Need more convincing? Added to that, most are free or very low cost. So if you are looking for a home appraisal in order to know how to determine the value of your home, this is our best bet.

Why It Matters to Know the Value of Your Home

If you are looking to sell up, it’s quite clear why you would want to know how to value your home. But there are reasons why all homeowners should determine their home value periodically.

Your current property value is taken into account when refinancing your home, to contest property taxes, eligibility for a home equity loan, and home insurance premiums. Having this information on hand will put you in good stead for anything that may come up in the future.

How to Determine the Value of Your Home Made Easy

Rather than being a mystery, there are many clear ways and tools available if you are trying to learn how to determine the value of your home. We hope that our insight will help you gain a clear idea of your property price.

If you would like the stress taken out of the process, then don’t hesitate to contact Jesse Garcia. With over 24 years of experience let us help you in getting the right valuation today!