6 Ways to Get a Real Estate Price Estimate for Your House

6 Ways to Get a Real Estate Price Estimate for Your House

1. Use a reputable online home value estimator

An Automated Valuation Model (AVM) gives an instant estimate of value through the analysis of real estate transactions as well as home information for existing properties. By analyzing data from tax assessments, and other public documents, these online assessments allow you to compare the worth of similar properties and determine an estimate of the home’s value.

It’s essential to be aware that although online assessments may provide you with a rough estimation (and provide it quickly) However, these online tools will not be able to reflect recent improvements to your home, for example, a kitchen remodel that’s been completed or pool that has been recently installed or brand new windows.

Due to this, the online assessment tools have limitations. Businesses like Zillow and Redfin have stated that the AVM median errors are around 2 percent for houses currently on the market. For homes that are not on the market, the error rate is estimated to be around 7 percent. On-market properties tend to have the most current information available, which means that AVMs will provide an accurate estimate of value.

Rachel Massey, a certified appraiser of residential properties in Ann Arbor, Michigan, believes that online appraisers aren’t always reliable or extremely inaccurate, depending on the type of property and the area.

“For a condominium unit that is in average condition in an area with many sales, the tool should be quite reliable,” she declares. “On the other hand, a lakefront property will probably be very inaccurate because the tool will pick up houses that don’t have frontage and include them in the algorithms.”

Christie Wilkins, a top real estate agent in Duluth, Georgia, echoed the opinion. “An online assessment won’t be able to tell if a home has hardwood versus laminate, or whether the basement is finished or has other upgrades.”

In the high-end neighborhoods in which the majority of Wilkins properties are situated, most homes are built by different builders. This means that even the same size, two houses can differ up to 1 million dollars in value depending on the features inside. If that’s the situation, the online appraiser might not have suitable details to determine an accurate figure.

The RealPro NJ Home Value Estimator assists in generating precise estimates by asking homeowners a set of seven questions regarding their homes prior to providing the price of a house in a real estate estimate.

If you are looking for an online valuator, it could be the perfect option:

  • The property is situated in a subdivision in which the homes are similar in size, and age and have the same features.
  • You’re considering renovating your home, and you want to evaluate its current worth before making any changes.
  • There are several transactions of similar properties in the region.
  • You’ll want to do an initial calculation of your home’s likely value. Then, subtract the anticipated selling charges and your current mortgage balance to determine the expected net profits.
  • You’re trying to confirm or deny a claim which was by comparing transactions (called”comps”).

2. Do your own comps analysis

If you’re looking for an accurate estimate of your home’s value and are willing to put some effort into it, you can conduct a comparative market analysis (CMA), which is also referred to as a “comps analysis.”

Comps analysis has traditionally been performed by agents specializing in real estate to assess the worth of a house before putting it up for sale. With the majority of the data needed for the analysis accessible online for the general public to access It is now feasible for homeowners who are interested to arrive at a pretty precise estimate by conducting the analysis themselves.

In the broadest sense, how to come to an estimate is by comparing your home to the equivalent of three to five homes in the neighborhood. It is essential to consider factors such as size or condition, design, style, and location when looking at the data before formulating an estimate. A few of the factors to take into consideration are:

  • Description of the house (location and floor plan number of bathrooms and bedrooms)
  • The square area of the property
  • The sale price (both the total as well as cost per square foot)

Benjamin Shrauner, a Kansas City-based real estate investor who has been featured on USA Today, advises homeowners to look for similar homes that sold in the past six to 12 months, within one mile of their homes, and in a similar state. “It’s also important to avoid crossing dividing lines, like highways or vastly different neighborhoods, as those would not be included in a bank appraisal,” Shrauner says.

According to Wilkins she’s not opposed to clients who run their comparisons because doing some initial research may help her work. If a homeowner has had a sense of the current state of the market and where their home has positioned the market, it could benefit to strengthen Wilkins’s argument when she comes to formulating pricing suggestions. “When a seller has already looked at comps, it can benefit take some of the emotional aspects out of it, and I may not have to fight them to accept a more realistic price based on the market,” she explains.

Agents specializing in particular areas could possess information that the general public might not be aware of, adequate to Wilkins. Of course, the process of calculating sales comps doesn’t consider any internal factors that could affect the value of a house which is where having a top realtor in your local area comes in.

​3. Partner with a top real estate agent

Although technology makes it easy for homeowners to obtain an estimation of their home’s value on the internet, if they want the most precise estimate, they’ll have to consult with a professional.

Wilkins states that in a few instances, homeowners have contacted her after receiving an actual house price estimate and then discovering that the estimate was 20 percent more than the market value. In such cases, she will come up with a thorough comparative market analysis based on market conditions and comparable sales in the region. “We work as a team with the seller to ensure we select the right price,” she explains.

There are several key advantages of having an experienced real estate agent is beneficial to the whole process.

  • Connect to the MLS Agents can gain access to the regional diverse listing services (MLS) in your region and can prepare data points that aren’t available anywhere else. It can benefit your agent to determine the perfect property cost estimate for your home.
  • Local knowledge and expertise A leading realtor in the local area gives you a depth of knowledge and local expertise for the entire process that cannot be replicated by technology alone. This covers local market trends, buyer preferences, and how the condition and attributes of each property affect its value.
  • An important contact for plans in the future for plans. Working with an agent for an estimate of your home can help you get into a better position when looking to put your home for sale. Particularly if the prospect of selling your home is on your head, you might be able to reach out to a few experienced agents to get estimates, and then look at CMAs CMAs before making your decision.

The agent finder from Realpro NJ can connect you with the experts in the area. They will also benefit you to come up with an estimate based on the area developments, the market as well as the home’s features.

4. What is a cash buyer have to offer?

Another feature to determine the potential worth of your house is to figure out what cash buyers will pay for it off market. With Realpro NJ, you can ask for an estimate and determine the Simple Sale cost which is generally about 90% of the market value.

Contact an local investor to request an offer on cash. As an experienced, well-qualified investment manager, the Shrauner typically purchases houses for cash. After evaluating his property’s condition, he decides the needs for repairs to be completed and determines the total after-repair value (ARV). He also considers similar sales in the region before making a cash offer. “Keep in mind that an investor’s offer will reflect the expected cost of the needed repairs and profit required,” the expert says.

Finding investors in your neighborhood is as simple as doing a simple search to search for “we buy homes in X,” in which case “X” equals the city that your home is situated in. For instance, “we buy homes in Kansas City” or “We buy houses in Seattle.”

The cash offers you receive are likely to be less than what your house will be worth if it was sold. However, while you may not get the market value of your house if you decide to sell with a cash purchaser the benefit you’ll receive is a fast, hassle-free sale.

If you decide to sell your home the property to an investment company, you don’t be required to stage your home or schedule your day around shows or make any repairs or changes prior to putting the property on the market. It’s also less likely that the sale will fail — and you typically can make a more flexible choice when selecting closing dates.

5. Check the FHFA House Price Index Calculator

Another method to research online your home’s worth is to utilize FHFA’s (FHFA) Price Index Calculator. This tool is freely accessible and simple to use by simply entering the following information:

  • State/region
  • Purchase quarter
  • Valuation quarter
  • Purchase cost

For instance, a home bought in the beginning quarter of 2014 for $225,000 in Napa, California, would be worth $376,000 by the end of the third quarter in 2021. The figure below represents a 67.1 percent rise in the value of the property from the moment it was bought.

Alongside providing an approximate estimation of your home’s value, the calculator, as well as quarterly data, can prove to be an invaluable resource for homeowners to refer to prior to putting their home on the market. It is easy to determine the rate of appreciation in your region and the latest trends in home prices.

Be aware that the calculator does not examine the individual properties, but rather general trends. Therefore, while the data can be valuable, it’s not as precise in helping you to determine your home’s cost estimate like running comps or the help of an experienced professional in real estate. well-qualified.

6. Order an appraisal

Although all of the other methods of estimating the value of your home that we’ve listed can be done without cost, an appraisal can cost between $400 and $550 on average, depending on the dimensions and area of your house. It’s the most precise method of assessing the value of your house.

Despite the cost even though it is expensive, there are important reasons to decide to pursue an appraisal of your home:

  • Selling FSBO It is possible that you are contemplating selling your home without the help of an estate skillful. Because you won’t be in a position to count on the experience of an agent to benefit determine the accurate price to list your home An appraisal can assure that you’re not listing prices that are too much above or lower than market value.
  • Selling a house that’s unique Maybe you’re selling a property with unique characteristics that you aren’t sure if are taken into consideration in the estimate. It could also be a great way to determine which agent to use who have different opinions regarding the worth of your house.
  • An appraisal for refinancing can be a good idea if are contemplating refinancing and are looking to determine the amount of equity you have on your property. But keep in mind that lenders require an appraisal when you want to refinance. You could be required to pay two appraisals should you choose to have one prior to negotiating with the lender. If the equity of your home is greater than 20 percent and you pay the private mortgage insurance (PMI) it could be a great option to eliminate this monthly cost from your mortgage.

Wilkins acknowledges that it can be beneficial to get an appraisal prior to listing an item that is distinctive or has any local competitors. “We want to make sure we’re not leaving any money on the table, but we don’t want to price too high, either,” she says.

An appraisal in the hands of the buyer is a great way to benefit improve the credibility of the seller as well as justify the listing price and benefit to avoid bargaining with a seller who is not worth it.

In order to get pre-listing appraisals, Massey suggests that the buyer seek the opinion of an experienced local skillful appraiser, as well as some realtors.

“The agent is going to look at pricing a house for sale related to the current offerings, which may be stratospheric and unrealistic, while the appraiser will look at sales that have closed and are verifiable, as well as pay attention to current activity,” she clarifies. “The more complex the situation, the more important the appraisal and the higher fee the seller should expect to pay.”

Q&A: Assessing your home’s value

What is the difference between the market value and appraisal value?

The value of a home’s market value is determined by the amount the buyer is prepared to for the house. The amount is heavily dependent on the market conditions in your area and the quality of the neighborhood, how attractive it is, the amount of inventory is available, as well as the distinctive features of your house. An experienced real estate well-qualified will conduct an analysis of comps prior to listing a home to determine this reasonby comparing the house with similar features and that have recently sold, they’ll be in a position to determine an estimate of the market value for the home.

The appraised value is determined by a home valuation performed by a certified appraiser licensed in the state. They will conduct an own analysis of comp with properties in your area however, they will also combine it along with an extensive walkthrough on the house. This will allow them to take into account significant home or renovations that may be overlooked in other estimates.

Why is there such a difference between the market value and the assessed value of my home?

Homeowners are often confused as to why their house’s value is higher than its assessed value. The market value is what a potential buyer will spend on your house and can fluctuate according to market conditions. Generally speaking, market values have risen significantly over the past several years, as the demand for housing exceeded inventory levels in a number of regions.

Assessed value refers to the one assessors from cities and towns employ to calculate taxes on property. Because assessors are accountable for a vast area and have to consider enough details, the amount required for a complete appraisal isn’t feasible. Additionally, they might not feel the appeal of a specific area or the attractiveness of an area to potential home buyers.

What is the best method of estimating the value of your home?

The answer is it’s dependent. If you’re searching for the most accurate appraisal on your house (because you’re planning to list your home for sale, for example), there is no way to compare to appraisal accuracy. As we’ve discussed, there’s a price of precision, however.

In other words, there are a lot of advantages of having a top real estate agent on your side when you are working on an estimate for your home — particularly in the event that you will require an expert in the future. Their understanding of the local market and the types of buyers they are looking for is an enormous benefit for homeowners.

Bottom Line? You have options

According to your needs home owners have a variety of trustworthy instruments to assess the value of their home. A straightforward real estate home cost estimate together an AVM tool that is free and the House Price Index Calculator from FHFA is available at any time for an instant, no-cost estimate as well as more precise information about whether the value of your house is going either way or the other.

If you’ve got a specific goal to consider — such for instance, you’re thinking about the full renovation of your kitchen or refinancing your mortgage, or selling your home it’s possible to go further and conduct a comp analysis to benefit you make a better decision.

If you have questions in the course of your process or if you require benefit in the process of Comp analysis, then we recommend you to connect with an experienced realtor. Once you’re prepared, Realpro NJ can benefit connect you to a reputable competent within your local area.

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