DavidDetermining a home’s value is a vital part of getting as much money as you can from a sale. And if you’re a buyer, determining a home’s worth in the real estate market can help you make the best investment for your future. In this article, we’ll cover inside tips on how real agents assess property value to determine real estate’s worth in the market. Using these suggestions will help you ultimately get more for your money, whether you’re a buyer or seller.
Perform a Competetive Market Analysis (CMA)
CMAs are real estate agents’ secret weapons when it comes to determining property value. But you don’t need to have a real estate license to perform one! Start by gathering data about the local market. Namely, you want to look for the average sale price of homes that have sold within the last six to 12 months and compare them to the cost of the property in question.
Similarities help here; it’s best to compare a property to homes of similar sizes and designs, ensuring that the asking price is a fair reflection of what buyers are willing to pay in the market.
Use Online Calculators
Another simple way to gauge a home’s value is to use free real estate calculators. Check out the Federal Housing Finance Agency’s (FHFA) House Price Index (HPI) calculator to get an idea of what a property is worth in today’s real estate climate. This calculator can also help you get an idea of how the home’s value has changed over time.
We all know the real estate market can be difficult to measure, and it can be helpful to have a historical view of the home’s value over the last decade.
Hire an Appraiser
Professional appraisers analyze homes to determine their value. They take factors like location, age, size, and amenities into account to reach a final figure. They’ll also consider houses for sale nearby and the current market conditions in US real estate to help you better understand what a property is worth today.
Buyers can hire an appraiser when they are buying a house without a mortgage or if their loan qualifies them for an appraisal waiver. In other cases, sellers hire appraisers to set the right price for their home and get the best deal when they go to market.
Work With a Real Estate Agent
Agents are professionals who can offer an expert perspective on a property’s value. They can also offer a realistic price range to list a home for, which can be helpful if you are selling and worried about not earning as much as you could for your home.
Your real estate agent will be able to assess multiple property values in the area, letting you know how much to price your home or how much you should expect to pay as a buyer.
Remember the Market Always Changes
Stay on top of real estate changes in your local market, so you can strike at the right time. Sometimes, it pays to wait for prices to drop or for houses to sell for higher figures. In the end, what matters most is ensuring you are happy with the price.