Have you ever wondered, “how much will my house be worth in 5 years”? Of course, you have. This is the basic question that anyone thinks of before buying a house. If the home value calculator doesn’t show the appreciating numbers, you won’t buy that house – it’s a simple phenomenon.
But, do you know the average home value increases per year up to 3.8%? Now, this is just a mere estimation because it is very hard to find the average home appreciation rate as multiple factors determine it like –
- Size of the house
- Location and nearness to the local market
- Age of the home
- Economic conditions prevailing in the market
- Cost of renovations and repairs
- Price of other houses sold in the locality, etc.
There are so many external reasons that influence the home value determination. Thus, without the effective house estimate calculator, you can’t find the exact market value of your home.
How to Value a House?
If you are planning to sell your house, but you have no clue how to value a house? Then, don’t worry; by the end of this post, you will become a pro at property evaluation. You should keenly focus on the following pointers while calculating the worth of your home.
Start with Online Home Value Calculator
The online house estimate calculator uses your given information along with the public records to estimate the correct market value of your property. The tools are the easiest and convenient way to determine the worth of your home.
For example, the Panazz home value calculator requires your home address; it will automatically provide the overall estimate of your property, the price per square foot, sales history, property details, and much other information.
Additionally, if you want more than your home value evaluation, you can contact our experts at any time and get a real estate consultation anytime. Our technical and intelligent home value calculator will even show how much average home value increase per year? So, you just have to go online and start estimating your home’s worth.
Contact Professional Home Appraisers
Usually, lenders use the services of home appraisers before they have to get mortgage approval. But, you can hire professional home appraisers to estimate your home value anytime. In the US, more than 28% of homeowners use the services of home appraisers to estimate the exact worth of their property.
It is the responsibility of the home appraisers to understand the requirements of their clients and provide services accordingly. Sometimes, homeowners want to know how much will their homes cost in the next five years, and some want to know how much they will value today? Thus, a home appraiser evaluate the following things to give the right answers –
- The area, city, and neighborhood of your home.
- Characteristics of the house, including improvements and the land it sits on.
- It even compares all the listings, vacancies, depreciation, and other factors impacting the value of your property.
Draw a Comparative Analysis
If you are serious about valuing your home, you can contact your real estate agent for comparative market analysis, aka CMA. It won’t be as deep as a professional appraisal, but it will provide an estimation about how much your home value – typically for listing purposes.
Generally, if you have a regular realtor, he or she will provide a CMA for little or no cost. However, when you are selecting a real estate agent for CMA, you need to hire a person whom you can fully trust. If you can’t trust the realtor, it might create a problem for you.
Evaluate Comparable Properties
One of the main appraisers and real estate agents’ tactics to estimate your house value will be comparing prices of the recently sold properties. It is a traditional and authentic trick to estimate the value of your home by comparing it with the value of a similar house recently sold in the area.
It is one of the simplest and economical ways to determine the value of your property without paying an appraiser or real estate agent. However, to draw a perfect comparison, you might have to work hard. You have to consider multiple factors that might attract buyers to your home. To prepare a correct comparison, you have to primarily look for similar size, condition, upgrades, and location.
To start with a comparison, you have to consider the following things –
- You have to get hold of MLS listening that represents all the houses sold in your neighborhood.
- If you can’t find many recent sales, you can look for the listing prices and remember that listing prices might not be real.
- To draw a conclusive comparison, you at least required three similar houses. The more recent sales numbers you have, the better results can be drawn.
Once you’ve chosen comparable properties, things get a little tricky. Now, you have to mark the difference between your home and the comparative properties. For example, if the comparable property has more bedrooms, your house, you have to add value to the property rates. On the contrary, if your home has a better interior, you have to deduct a value from the comparative property. Thus, it takes a great level of patience and knowledge to prepare a property comparison chart.
Take a look at the Pannazz’s real estate market watch that gives you a 360-degree view of the realty marketplace, be it any area or location.
Once you have gone through all the pointers, you will definitely know how much will my house be worth in 5 years. Additionally, if you still have any doubts or don’t have time to evaluate the value of your home, you can use the Panazz platform to evaluate the exact value of your home. In this platform, we have combined the expertise of professional real estate agents with machine learning and artificial intelligence. We will quickly calculate how much does your home costs!