How to Assess a House's Value

When homeowners or potential buyers want to determine what a property is worth in today’s market, they hire a licensed appraiser. An appraiser makes the determination based on the history of what a ready or willing buyer will pay for a similar property.Another way to assess the estimated value of a house is to contact a licensed real estate agent and ask for a comparative market analysis of the property. But keep in mind that a real estate agent is not a licensed appraiser. In many states, it is only legal for a real estate agent to offer his opinion (in the form of a comparative property analysis) when he is considering listing the home, or helping a buyer to determine if an offer is reasonable.

Things You'll Need

• Data for recently sold properties in subject area

Instructions

1. Identify comparable properties that have sold in the last six months.

2. If the subject property (the house being assessed) is located in a housing track with similarly built houses, locate comparable properties from that neighborhood with the same or very similar floor plan.

3. If the subject property is not located in a housing track, locate comparable properties within a half mile radius. If there are no comparable houses, expand your radius.

4. Look for comparable properties with a similar style, square footage (within 200 square feet), age and garage type to your subject property.

5. Narrow your search of comparable properties to three to five, choosing those that most closely match the subject property. The high and low price range of the recently sold properties indicate the value range of your subject property.

6. If a comparable property and subject property differ in the following amenities, you will need to make adjustments to the subject property’s estimated value: swimming pool, walled yard, extra garage, landscaping, granite kitchen counters, tile flooring, age, square footage, condition, custom flooring, view, lot size, roof type and custom kitchen cabinets.

Tips & Warnings

• A swimming pool may add to or reduce the value of the property, depending on the condition of the pool and its location.

Resources

• Read this Article in Spanish