The past year has been a rollercoaster ride on many fronts. However, homeowners have seen a silver lining. Home prices have risen significantly. You might be wondering whether you should capitalize on the rise in home values and sell your house or tap into its equity. Consider your options and ask yourself this question: How much is my house worth?
Consider the following three types of valuations when estimating your home’s value:
Fair market value: This is the value of your home to potential buyers in comparison to other homes in the same area. Consider the sale price for a similar home (with the same number of bedrooms, bathrooms, square footage, and outdoor space). Your agent will look at comparable properties to determine what buyers are willing to pay for a similar property to yours if you hire a realty agent to help you with your home sale.
Appraised value: Although comps are included in the appraised value, it is not comparable to fair market value. A licensed appraiser will evaluate your home’s condition, size, location, and renovations to determine the appraised value. When a borrower purchases a home or refinances their mortgage, the appraised value is what they consider.
Assessed value: This is the dollar value assigned to your house by the local county tax assessors in order to determine property taxes.
If you are planning to sell your house, contact us today! Working with us is a guarantee of an easy and quick sell. We will buy your house in cash regardless of its condition.
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How to determine the value of your house
Use an online home value estimator
Ideal for: Buyers, sellers, and anyone who is curious about the approximate value of a home.
There are many online tools that can quickly estimate your home’s value. These online tools, sometimes called automated valuation models, use algorithms and publicly accessible data such as tax assessments, recent sales, and other public records to generate an estimate.
Many home-value estimators are available, each using a different method, so your estimate may vary.
Ask a realty agent for a complimentary comparative market analysis
Ideal for: Homeowners who are selling or thinking of selling their home.
If you are selling your house, real estate agents will often offer a complimentary comparative market analysis (CMA). The agent will pull data from the area about the recent sales to complete the CMA. To estimate the property’s value, they draw on their knowledge about the area and any unique characteristics. A buyer’s agent may also provide this service for any property you wish to offer.
Check the website of your county auditor or municipal auditor
Ideal for: Tax-oriented individuals who want to understand the value of their home.
The county auditors periodically value residential properties for tax purposes. This information can be searched online. To see if your house has appreciated or to compare it with other homes on sale, you can search the assessed value online.
Hire a professional appraiser
This is the best option for: Homeowners who want a professional estimate of their home’s value. They may also want to use the data when consulting with a mortgage lender.
Before approving a loan, mortgage lenders hire appraisers. Although some home sellers may choose to hire an appraiser, it is not mandatory. The appraiser will consider the property’s characteristics, such as its number of bedrooms, bathrooms, and comps. This is similar to a CMA prepared for a real estate agent.
- Pros: Appraisers are licensed or certified by the state in which they work. They can give an objective opinion on the home’s value.
- Cons: If you are applying for a mortgage, the lender will require that you pay for an appraisal. According to HomeAdvisor, it can cost anywhere from $300 to $420.
Sell your house in Fort Worth, Texas, we at DFW Buy My House make the whole process easy for you. If you need a fast, fair, and firm cash offer that you can count on, contact us at (682) 325-8345.