If you are considering selling your home or using it for collateral on a loan, you first need to determine how much your home is worth. These four methods can help you determine the financial value of your home.
1. Use Online Tools
There are many resources available to you online that can help you determine the value of your home. You can research the value of similar homes on house hunting sites such as Calgary House Finder. You can also use one of the many online estimation tools. Another good resource is searching public records, such as property transfers, deeds and tax assessments. Because these sources serve different purposes, the values you get are likely to differ but should give you an idea of the price range you can expect.
2. Hire an Appraiser
Many lenders will require an appraisal as part of their application process; however, it can be useful to have your own appraisal done by an independent appraiser. An appraiser can tailor their appraisal to your needs, whether that is determining current market value for a potential sale or refinancing your home. Appraisers base the value of your home on the geographic region it is located in, the features of the house and the property it is located on, and the market value of other similar homes in the area.
3. Ask a Real Estate Agent
A real estate agent can do a comparative market analysis on your home. This analysis estimates your home value based on what similar homes in your area have recently sold for. Some real estate agents may offer this service as an incentive for potential sellers to hire them as their agent. If you are not currently considering selling your home, this may not be the best option to use.
4. Educate Yourself About Market Value
Many homeowners have an inflated idea of what their home is worth, because they may think it is related to their mortgage payment or improvements they have made that do not add much to the sales value. Factors to consider when determining the market value of your property include, the location, curb appeal, square footage, safety, the quality of the local schools, the local job market, the number of rooms and how recently features such as the plumbing, appliances and roof have been updated.
Knowing the market value of your home can be useful in determining a sales price or in obtaining financing. These four methods can help you determine your market value.