How to Appraise a Home's Value
A home appraisal can be complicated by a number of factors; some relating to the home itself, others relating to the area and market. Knowing how much your home is worth can help you determine how much you want to ask for it when you sell it. A home appraisal can also be used to stop your mortgage lender from charging private mortgage insurance. If you can show that you have attained 80 percent equity in the home through a combination of payments and appreciation of the home's value you submit the appraisal to prove your increase inequity.
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Instructions
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Determine the size characteristics of the home, including how many square feet it is, how many bedrooms and bathrooms it has, and how large the garage is. The larger the home, the more valuable it will be.
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Determine the physical characteristics of the home. These include the age of the home, the current condition, and any repairs that may be needed whether they be on the home like windows or doors or permanent appliances like air conditioning or water heating.
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Determine the intrinsic characteristics that the home possesses. These are often related to the neighborhood that the home is located in. For example, neighborhoods with low crime rates, good public schools and access to public transportation will increase the value of the home.
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Compare your home to the selling price of other homes that have sold in your neighborhood recently. The most accurate comparisons will be with homes that have sold within the last year and that are similar to your home in size and features.
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Consider market factors. If there are more buyers than sellers, you will be able to command a higher price for your home than if there are more sellers than buyers. Take into consideration market interest rates because the lower the interest rate a person will have to pay on a mortgage, the more they will be able to borrow.
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Tips & Warnings
Consider getting an independent appraisal of your home if you need an official estimate of the value.
The amount you will be able to sell your home for will depend on how quickly you need to sell your home. The less time you have to sell, the more likely you will have to lower your price to get a sale.
