How Much Is Your Home Worth? How to Determine House Value | Credible

Our goal is to give you the tools and confidence you need to improve your finances. Although we receive compensation from our partner lenders, whom we will always identify, all opinions are our own. credible Operations, Inc. NMLS # 1681276, is referred to here as “ credible. ” Whether you ’ ra intelligent of buying, sell, or refinancing — or you ’ re precisely curious — you might want to know how to determine a house ’ second value. fortunately, there are respective ways to find out how much a house is worth, and you might get different results from each one .
Here are some options for finding the value of a home:

How to find the value of your home

To determine your home ’ sulfur prize, try one or more of these methods.

1. Online home value calculators

Online home value calculators use automated valuation models, or AVMs, to estimate how much your home is deserving. These estimates are based on a wide range of property and local market data, including your home ’ south hearty footage, phone number of bedrooms and bathrooms, holocene comparable sales, local market trends, and more .
Online evaluation tools don ’ triiodothyronine account for unique features of your home that might increase or decrease its value, such as how old your roof is or when you last remodeled your kitchen. For that, you ’ ll need a master appraisal .
Tip: You ’ ll besides get different base values from different calculators because they use proprietary formulas.

You’ll also get different home values from different calculators because they use proprietary formulas.

Here are two home value calculators we like:

  • PennyMac Home Value Estimator
  • Redfin Home Value Estimator

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2. Comparative market analysis from a real estate agent

If you ’ re plan to hire a real estate agent to help you sell your home, you can ask them for a comparative market analysis, or CMA. They ’ ll look at similar, recently sold properties in your sphere and analyze how they compare to yours. After that, they ’ ll arrive at a fair market value and help you set a strategic list price for your home .
A CMA requires a knowing local agent who can assess how other homes ’ characteristics contributed to their selling price, along with how your home compares and how to estimate its value accordingly .
Your agent will besides need to understand nuances such as how much buyers in your area will devalue a property that backs up to a major road or how a lot value a screened-in patio adds .
See: How to Increase Your Home Value: Complete Guide

3. FHFA House Price Index Calculator

The Federal Housing Finance Agency ’ randomness ( FHFA ) House Price Index ( HPI ) Calculator is an on-line joyride that can tell you how the estimated value of a home in a given metropolitan statistical area ( MSA ) may have changed since you purchased it. Its calculations are based on the percentage variety in home values in the MSA during that time span .
The FHFA ’ s HPI calculator is not likely to be useful to an individual who is buying or selling a dwelling. That ’ south because the values it provides are based on averages, and it can ’ t tell you the actual respect of a particular house. Homes within the lapp MSA can have wildly different values because an MSA encompasses such a large sphere. The HPI doesn ’ triiodothyronine account for vicinity conditions or a specific home ’ second attributes.

This instrument, and all the datum behind the HPI, might help you out if you ’ re a research worker or an economist, or if you just want a agile overview of how place values have trended in the area over the years. But if you ’ rhenium looking for a more accurate evaluation of your dwelling, we ’ d commend going with a professional appraisal .

4. Professional appraisal

Hiring a professional appraiser costs respective hundred dollars but is often the best way to get the most accurate value for your home. That ’ s why mortgage lenders much require a home plate appraisal before they ’ ll approve your mortgage application .
Good to know: Lenders do sometimes rely on AVMs to save time and money or even

Lenders do sometimes rely on AVMs to save time and money or even waive the appraisal for a refinance or second mortgage.

Here are some of the factors appraisers take into account when establishing a value for your home:

  • Location
  • Square footage
  • Interior and exterior condition
  • Number of bedrooms and bathrooms
  • Lot size
  • Age of the home
  • Heating and cooling
  • Updates and renovations (such as a new garage door or hardwood floors)
  • Neighborhood and surrounding properties
  • Home design
  • Current market conditions

What is home value?

There’s more than one way to determine a home’s value. Here are three valuation methods for residential real estate and the different purposes they serve.

Fair market value

Fair market value is how much someone is willing to pay for your home. It’s based on supply and demand and explains why old mansions in Midwestern cities with major population losses can cost less than starter homes in bustling West Coast cities.

Fair market value assumes that the seller isn’t giving the buyer any breaks on the price, and that the buyer has a solid understanding of the property’s characteristics.

Appraised value

Appraised value is how much your home is worth for lending purposes. It’s determined by a state-licensed appraiser.

The appraised value may be higher or lower than fair market value. If it’s lower, the seller will need to lower the price. Otherwise the borrower will need to increase their down payment to gain mortgage approval and close the deal.

Tip: Appraisers try to be objective, but can make mistakes or be biased. You can challenge a

Appraisers try to be objective, but can make mistakes or be biased. You can challenge a low home appraisal with solid data.

Assessed value

Assessed value is how much your home is worth for property tax purposes. To find the assessed value of your home, you can look at your property tax statement or contact your local property tax assessor.

Some jurisdictions even have websites where anyone can look up a property’s assessed value. Assessed value may be less than the property’s current fair market value. Common reasons for this include homeowners exemptions and statutory limits on annual property tax increases.

Keep Reading: Property Tax Assessment: What It Is and What It Means

About the author

Amy Fontinelle

Amy Fontinelle

Amy Fontinelle is a mortgage and credit card authority and a contributor to Credible. Her work has appeared in Forbes Advisor, The Motley Fool, Investopedia, International Business Times, MassMutual, and more.

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