1. Comparing to recently sold property
This is one of the most popular home estimation strategies used in the real estate industry. It is most often used by real estate agents and appraisers.
To understand how much your home can be estimated at it is necessary to compare it with the homes that have been recently sold. There are several features to consider when choosing a property for comparison:
- Location (it must be neighborhood or one district);
- External characteristics like curb appeal, size, condition, yard facilities etc.
- Internal characteristics like a number of floors, rooms, construction quality, heating system type, appliance condition etc.
- Age of the property;
- Supply and demand (how many homes are on sale versus the number of potential buyers searching for property in this area).
As soon as you make all the necessary notes about your home, start looking for homes with similar characteristics. It goes without saying that you will not find the same or very similar home but you will probably find a couple of examples with a close date of building and size. That will help you to determine an average price and move it up and down depending on the characteristics. Superior ones can contribute to the higher cost, while worse conditions are a reason to lower the cost. Sale price is easier to adjust if to create a comparative table.
Another important question where you can find comparable sales. According to the Department of Taxation and Finance, NY state, there are several sources:
- Local assessor’s offices;
- Online databases;
- Local newspapers;
- Real estate agents.
2. A real estate agent or appraiser’s home inspection
Your home can be estimated not only by you but also by professionals. For this purpose, you need to order property value estimation services provided by most of the real estate agencies and private appraisers. A specialist will come to your home and inspect all the details to make necessary notes. On the basis of this data, he will make a comparative analysis of the recently sold property (look at the point number 1) and offer you an average price.
3. Tools for home estimating
One more popular modern approach to determining the property value is a use of special tools created for this purpose. Most of the work in a similar way. You need to enter a postcode and other essential information about the home, including its address, type, age, tenure, and the number of rooms.
If you wish to get a more precise result, you can also complete a questionnaire about other property features to make evaluation more accurate. There is always a national margin of error for home value as the results depend on the number of property on sale and their condition.
Online tools usually analyze data available to the public. These are usually public records and many listing services. The choice of data also influences the accuracy of results, so the choice of the tool is also important.
The most popular tools are Zillow, a pioneer in this sphere, RedFin, Pricing Scout tool from Forsalebyowner.com, Chase, Bank of America, Surefield and others.
Property value is a very important characteristic that must be known to every homeowner. Whether you are going to sell the property or moving, it is important to know how much this home is estimated at. You will learn a correct marketing price and understand if any improvements are required to increase its value. This knowledge is necessary for both buying and selling, investing or being interested in, so choose an appropriate home value estimation way and you will be always armed with important data.