32% of home sellers typically report having to reduce the asking price due to overpricing. Conversely, 75% of buyers overpaid for their homes and now struggle to repay their mortgages.
Whether you’re selling your home, refinancing, or figuring out the equity, correct estimation of your home’s worth is crucial. The quickest way to find your house’s worth is to use an online valuation tool like a free home worth estimator.
How to Estimate My Home’s Worth?
Primarily, there are three ways to determine the value of your home:
- Online Free Home Price Estimator: You can use a free home value estimator online to quickly know the value of your home. A quick estimation would suffice to give you an idea of the fair market value.
- Real Estate Agent: For more information on valuation, a real estate agent can prepare a comparative market analysis, also known as the CMA report. You can adjust this valuation as per the size and specifics of your home.
- Professional Appraisal: If you need to refinance or look for a HELOC, you will need a professional appraisal report from an appraiser appointed by your lender. The lender will then distribute the loan for a maximum of 70%-75% of the home valuation.
How Does the Online Home Value Estimator Work?
Online home price estimators analyze advanced algorithms to give you an estimate of your home. It takes data like recent house sales and available housing market trends to compare with similar properties.
The home value estimator provided by Houzeo takes another step ahead by using information from multiple sources to provide real-time home value estimates. It also allows visitors to include the number of bedrooms and bathrooms, and square feet area.
Specific information about your home’s condition can personalize your valuation further. However, there remains a difference of 10% to 15% between the estimated and actual value. Thus, it is advisable to connect to a professional agent for an accurate appraisal report.
What Affects My House’s Worth?
Multiple factors affect the worth of your home. These include:
- Location of the Property: Proximity to daily necessities like schools, parks, hospitals, and supermarkets positively impact your house’s worth. Whereas, homes located far from the city, or in suburbs may have lower valuations.
- Size and Layout: If you have a large house with more bedrooms and washrooms, your house may be worth more. Functionality of the home like bigger storage, wide living spaces, and garages can drive up its demand in the market.
- Condition and Age: If the property is well maintained throughout the years, it may have higher values than poorly maintained homes.
- External Factors: Market demand and supply trends impact home values from time to time. In case of high demand, the value of your house will increase and vice versa. Another factor is real estate comps – it’s the number of similar homes sold in your neighborhood.
Is It Important to Know How Much My Home Is Worth?
If you know how much is your home worth, it can provide a benchmark to set the right price or know the home equity. With the correct price in hand, you can set a realistic asking price on the MLS. A free home valuation tool lets you do this quickly.
Additionally, home price calculation helps determine home equity. If you want a HELOC as a second mortgage, you need to have at least 20% equity. The estimated value of your home can help clarify if you qualify for HELOC or not.
Besides online home worth calculators, you must approach professionals to get an appraisal. They can delve into the specific details of your property and offer a more accurate valuation report.
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