How to Appraise a Home

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Although you cannot appraise your own home for a real estate transaction, you can appraise it for your own knowledge. You can determine how much insurance you need and how much equity you have in your home. Availability on the internet of property records in many states has made this even easier. Having this knowledge can save you money on your home owner's insurance. If you need to sell your home, it can also show you approximately how to determine your selling price. As a buyer, you can do this to see if you are getting a competitive deal.

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Instructions

Difficulty: Moderately Easy

Things You’ll Need:

Your county property appraiser's website address
The current going rate for construction in your area
A pad and a pencil

Calculating the Value of a Home

Step1

Access the county property appraiser's site for the area in which you are searching. Usually you will be able to perform a search within a particular subdivision or township. The search can also be done according to the most recent sales. Look for three homes that are the same square footage with the same amenities such as a pool or a fireplace. This will give you an idea of what this type home is selling for.

Step2

Add those three home sales prices and divide the total by three, which will give you the average sales price for the home. Also add any special amenities or features the home has. Now subtract the cost of any repairs that need to be done to get the total value. For more information, subtract the balance on the loan amount which will give the total equity in the home. .

Step3

To determine insurable value, first research the current construction rate for your area. Multiple that rate by the square footage of the home under air/heat. Anything else such as garage, shed and driveway are calculated at a much cheaper rate. Add these two totals together to get an approximate replacement value of the home.

Step4

Both of these calculations can help you to determine a more realistic value to your home whether needed for buying, selling or insuring.

Tips & Warnings

Remember, when insuring a home, the value of the land is not insurable. Also, the value of a pool is not calculated but is only considered for liability insurance.