How to Calculate the Value of a House
Consumers may need to calculate home values when selling a property or refinancing their homes. The value of a home depends on a variety of factors such as property size, location and condition of the home. Homeowners who are just curious (don't need a concrete number for selling or refinancing) should use informal resources, such as online valuation tools. These options are free. However, if you plan on selling or refinancing the property, an appraisal will yield the most accurate value.
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Instructions
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Contact a local real estate agent. Real estate agents determine local home values by evaluating home sales in the area. The agent will visit your home, evaluate the home's details (such as number of rooms and bathrooms) and come up with an estimated home value. Most real estate agents don't charge to calculate the value of a house. The agent, however, is hoping that you'll use him to sell your home.
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Use online tools to estimate the value. Online tools can give you a ball park estimate of your property's worth. Check out tools such as Zillow (see Resources). In the search field, enter your home's address. The database will compile local home sales to arrive at a value range. For example, it might determine your home is worth $200,000 to $260,000, based on recent home sales.
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Evaluate items that could drive down the home's value. Location (such as being on a busy street) or damages to the home may drive down the home's value. For example, if your home seriously needs a paint job and has several items to repair, the value will take a hit.
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Call a local appraiser. Appraisers are hired by homeowners and financial institutions to calculate a home's value. These professionals provide the most accurate calculation of a home's worth. However, hiring an appraiser will cost approximately $400. The appraiser will visit your home and note the property details. He will evaluate damages and other items that contribute to the home value. Based on the information, the appraiser will assign a value to your home.
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Tips & Warnings
If you hire an appraiser and don't agree with the calculation, you can get a second opinion (hire another appraiser). This is particularly important if you're refinancing your home and require the best home value.
Homeowners planning on selling a home should take care of repairs before determining the value (especially if you plan on hiring an appraiser). Leaving unfinished repairs will drive down the property value and give the impression that the home wasn't taken care of (a turn-off to potential buyers).
