House Value Estimate
Arriving at a house value estimate is not a simple task, but one worth doing. This article will approach estimating a house's value from easiest to most difficult to most expensive.
House Value Estimate- Simple
If you are looking for a house value estimate just to know an approximation of one’s house value a simple asking of the neighbors is in order. Either what they paid or if they have had a recent appraisal. Add to that house value estimate what listings are available for your neighborhood or area. Want a second opinion? Ask a real estate agent to ball park it for you through a quick tours and through comps (comparable listings). They will gladly give a close house vale estimate just to hope you will list with them.
House Value Estimate- Labor Intensive
If you are looking for a more accurate house value estimate for a FSBO (For Sale By Owner) or another reason, one can look at court records for a house value estimate. A trip to the county courthouse should be all that is needed to get the tax assessors value on your and your neighbors’ houses. Just remember many municipalities have limits on property tax increases and they may not have been able to keep up. Also, tax valuations may not have kept up due to governmental ineptitude or new housing starts have kept county assessors busy. While this worked to your benefit owning a home (lower property taxes) it could hurt you when it comes time to sell. Therefore, it is important to add your own investigation (above point of finding what neighbors have as their house value estimate) to your findings from the courthouse.
Getting a certain house value estimate one must acquire formulas that home appraisers use. Some may be available online but more state approved formulas would be available in books. A trip to the library would be in order, then going over your home like you may never have before. Measuring and researching build dates, then factoring back in you findings from the courthouse. The formula should give you a true house value estimate, but be sure your emotions don’t exaggerate to influence the outcome of the final number.
House Value Estimate- Costly
Still, with all the do it yourself help in finding a house value estimate, the only bankable house value estimate will be one acquired from a third-party, licensed home appraiser. This is one that can be used for insuring home or a home equity home loan. However, if selling a home, wait for the buyer to bring their home appraiser (and the buyer pays for them) and see if their house value estimate matches with your house value estimate through comps and courthouse records. If it matches or is higher you have a deal. If lower, is it too low? If so, maybe this would be the time to get your own home appraisal. How low is too low? Double the cost of getting your home appraisal, because you can always offer to split the difference between estimates with a potential buyer.
