How to Calculate the Value of a Home
Calculating the value of a home is always necessary when buying or selling a home. During those transactions, a licensed appraiser is required to determine the true value. The value can be calculated by a homeowner to determined an insurable value or a selling value. It can also be done by a purchaser to determine the fair market value. For whatever reason, it is possible to determine a value using these techniques.Read the following instructions on how to determine the value of a home to estimate the value of any home in any town.
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Instructions
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Begin by taking the measurements of the home, garage, porch, patio, outdoor buildings, pool and any other structures that are on the property but not attached to the home. Each one is calculated separately. These measurements may also be listed on a previous appraisal.
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Contact a local construction company to find out the average building cost per square foot of living space in your area. Living space is anything under air conditioning or heating. A builder can also give you the cost per square foot of a garage, porch, patio and other structures on the property.
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Contact the local county appraiser either through their office or through the internet. Most county appraiser websites are now available on the Internet. Research the average price of land that equals the size of the lot that is being appraised.
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Using a calculator, multiple the square footage of each item by the quoted cost. Add all of these together plus add the estimated price of the land. This is the estimated value of the home.
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If any renovations or repairs need to be done, deduct those costs from the estimated value of the home. Also deduct the cost of any appliances and flooring that need to be replaced. This is the total value of the home.
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If the value of a home is needed to calculate a sales price, it is best to visit the county property appraiser's website and find 3 homes that were recently sold in the neighborhood. These should be approximately the same square footage with the same amenities included. Add the 3 sale prices together and then divide by 3. This sum is the average price at which the home can be sold based on market value.
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Tips & Warnings
Search the Internet for sites that list the current sales prices of homes in the area.
For insurance purposes, deduct the value of the land since land is not insurable.
When calculating, remember that the average cost of a pool is higher than the actual value of a pool.
Insurance companies have their own cost estimators to determine the value of a home.
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