The value of your home is a very important piece of information to have as a homeowner. This number is important for a multitude of reasons including, but not limited to:
- Selling your home
- Annual property taxes
- Insurance premiums
When determining your home’s value, keep in mind that the information you get may not be 100% accurate, especially if you are using a calculator that does not have up-to-date information.
Know What You’re Calculating
Before you begin calculating your home value, you need to know exactly what it is you are calculating. There are two types of home value: assessed value versus fair market value, or the selling price that you, the seller, and the seller can agree on. For the purpose of calculating your home’s value, the assessed value is used.
There are many factors that affect your home’s value like the number of rooms, landscape features, location, and the number of interior rooms. If renovations are made on the home, then they too must be taken into consideration because of improvements to the home
Use An Online Estimator
Online estimators like Zillow can provide you with a starting point in calculating the value of your home. In these calculators, simply type in the address and hit “search”. You may have the option to add additional details like square footage, age, and how many rooms the home has so the calculator has more to work with. Just remember that these calculators should not replace an official estimate and is accessing data
Work With An Expert
Always consult with an expert when it comes to determining your home’s value. An expert appraiser has resources that will lend for a more accurate estimate. An expert will evaluate the local market where the home is located, the characteristics of the house and property, and look at comparable houses in the same market.
You will receive an official report with their final opinion of your home’s value. For tax reasons, your home’s assessed value is calculated annually.
The above information is for educational purposes only. All information, loan programs and interest rates are subject to change without notice. All loans subject to underwriter approval. Terms and conditions apply. Always consult an accountant or tax advisor for full eligibility requirements on tax deduction.