How to Determine the Value of Real Estate
Whether you're selling property or just curious, it helps to understand how to find a home's value. A home's value is determined by a variety of factors, such as number of bedrooms, bathrooms, square footage, acreage and location. Valuation tools typically evaluate comparable homes in the area to determine the value of the property. Homeowners have a variety of tools available, including online tools, realtors and property appraisers, to help them determine their home's value.
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Instructions
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Use online valuation tools. Online tools, such as Zillow (see Reference section), allow homeowners to get an estimated real estate value. After the homeowner has entered the property address, the tool searches a database for comparable home sales. Based on that information, it creates a value range. For example, a home might be worth $225,000 to $275,000.
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Set up an appointment with a real estate agent. Realtors can also help you determine the value of real estate. These professionals use tools to evaluate current home sales in the area. Most realtors will assist with determining a home's value for free. The realtor does this hoping the property owner will decide to sell his home.
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Contact an appraiser. The most accurate method for determine the value of real estate is hiring an appraiser. The appraiser will visit your home to evaluate the unique features and condition of the home. She will then view comparable homes in the area to arrive at a real estate value. Hiring an appraiser will cost about $400, depending on rates in your area.
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Use a couple of different methods for determining real estate values. This will give you a more accurate estimate of your home's worth. For example, using online valuation tools and talking with a real estate agent will provide two different opinions on the property market value.
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Tips & Warnings
If your property value is low, don't get discouraged. Real estate values fluctuate frequently. Wait several months and determine the home's value again.
Before scheduling an appraiser, take care of home repairs. Otherwise, he might ding you for items in disrepair. If you plan on selling your home, it's a good idea to take care of these items anyway. It will let potential buyers know the home was well care for.
