How to Figure Fair Market Value
Homeowners interested in selling a home or refinancing may be curious about the home’s market value. The value fluctuates based on the home’s details and geographic location. Using recent home-sale databases to evaluate current market conditions can assist in determining fair market value. Other tools, such as real estate agents and appraisers, can also assist in finding home values.
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Instructions
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Evaluate the home’s details. Home values are based on factors such as square footage, lot size and number of bathrooms and bedrooms. Write down the details of the home. These facts will help when looking for comparable recent home sales.
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Search recent home sales. Online tools, such as Zillow or Yahoo Real Estate, allow people to search recent home sales. To find recent sales near your property, enter your address. Find homes with similar details as the home.
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Compare homes with similar locations. For example, a home on a quite cul-de-sac will demand a higher value than a property with a lot of street traffic. Looking for recent home sales in similar locations will provide a better market value estimate.
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Contact a real estate agent. Another way to check a home’s fair market value is through a real estate agent. These professionals can prepare a market analysis by pulling recent home sales and evaluating the specific property. A market analysis is usually free. Real estate agents use this as an opportunity to network with prospective clients.
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Order an appraisal. Homeowners who plan on selling should consider ordering an appraisal. Most financial institutions require an appraisal to lend funds on a property. An appraisal also provides the most accurate home value. Order an appraisal by finding an appraiser (see Resources) and paying the necessary fee (usually about $400).
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Tips & Warnings
The websites Zillow and Yahoo Real Estate also will provide an estimated market-value range. Compare this number to the one you come up with to check accuracy.
Homeowners who order an appraisal should make home repairs before scheduling an appraisal date. Unheeded repairs will devalue the home. For homeowners who are selling or refinancing, every dollar counts.
References
Resources
- Photo Credit house image by Byron Moore from Fotolia.com
