How to Find the Market Value of a Home
When a consumer is refinancing or selling a home, she will need to determine the market value of the home. This value is determined by the home's condition, square footage and comparable home sales in the area. There are a few different methods for determining the market value of a home, including using online property valuation tools, talking with a real estate agent and hiring an appraiser.
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Instructions
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Investigate valuation tools. Homeowners may use valuation tools such as Zillow to estimate the property value. This tool works by tracking sales in the area and creating a market value range. For example, if two comparable homes sold in the area, one for $300,000 and the other for $325,000, the market value range would be $300,000 to $325,000.
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Talk with a real estate agent. Real estate agents specialize in estimating home market values. The agent uses a method similar to online valuation tools. She researches recent home sales in the area (with comparable square footage, bedrooms and bathrooms) to estimate a value. A real estate agent will typically provide a free market value, hoping the homeowner will decide to sell the property.
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Hire an appraiser. The most accurate way to find the market value of a home is to hire a licensed appraiser. An appraiser will evaluate your home, research local home sales and deliver an accurate market home value. If you're planning on selling your home, it's worthwhile to hire an appraiser. The cost is typically about $400.
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Use a few different methods for determining the market value of your home. This will allow you to better estimate the home's value. For example, you might decide to talk with an appraiser and use an online valuation tool.
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Tips & Warnings
Don't become discouraged if your home value is low. Market values fluctuate frequently. The value may increase again in the near future.
If you hire an appraiser, make home repairs before her visit. The appraiser will lower the home's value for items that need repair. If you're planning on selling your home or trying to qualify for refinancing, it's important to secure the highest market value possible.
