WHAT IS YOUR HOME REALLY WORTH RIGHT NOW? Is Zillow right?
What Is Your Home Really Worth?
The most commonly asked question from clients is "What is my home worth right now?". There are three basic ways to estimate the value of a home. They are: 1) value estimation web site; 2) comparative market analysis and 3) professional appraisal.
There are a number of web sites which offer value estimates of your home based on data you input in their web form. The value these sites offer is an estimate of your home's worth based on their system which may use a proprietary formula. If you read carefully, you are also advised to do the following: 1) obtain a comparative market analysis (CMA) from a licensed Real Estate agent and 2) have a professional appraise your home.
Since these on-line valuations use a proprietary formula which is not shared with the public, the only way to verify the true value of a home is to have professionals with "boots on the ground" visit the property and generate a value based on first hand knowledge.
The hard reality is a home is worth what the market will bear at the time it is sold. The most reliable estimate comes from the sale prices of the SOLD homes in your neighborhood for the past three months which are similar in size, condition, etc. This Comparative Market Analysis is an average of those values. Because home prices may not have reached the bottom yet, the value may be a percentage point or two below that average. If you've done quite a bit of updating and remodeling, it might be a few percentage points higher.
The most commonly asked question from clients is "What is my home worth right now?". There are three basic ways to estimate the value of a home. They are: 1) value estimation web site; 2) comparative market analysis and 3) professional appraisal.
There are a number of web sites which offer value estimates of your home based on data you input in their web form. The value these sites offer is an estimate of your home's worth based on their system which may use a proprietary formula. If you read carefully, you are also advised to do the following: 1) obtain a comparative market analysis (CMA) from a licensed Real Estate agent and 2) have a professional appraise your home.
Since these on-line valuations use a proprietary formula which is not shared with the public, the only way to verify the true value of a home is to have professionals with "boots on the ground" visit the property and generate a value based on first hand knowledge.
The hard reality is a home is worth what the market will bear at the time it is sold. The most reliable estimate comes from the sale prices of the SOLD homes in your neighborhood for the past three months which are similar in size, condition, etc. This Comparative Market Analysis is an average of those values. Because home prices may not have reached the bottom yet, the value may be a percentage point or two below that average. If you've done quite a bit of updating and remodeling, it might be a few percentage points higher.
posted by Peggy Hoag at
6:00 PM
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