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Unlocking the Value of Your Home: Understanding What Your Property is Worth

Thursday, May 23, 2024

Unlocking the Value of Your Home:
Understanding What Your Property is Worth

Real estate prices have been dramatically changing over the past few years. Experts have been predicting a market crash since 2018! Yet, year after year home values have held steadily strong. We are just starting to see signs that the market is going to shift soon. With so many questions about what the real estate market is going to do next, many homeowners are asking themselves what is their home worth?

Predicting what your home’s value is similar to predicting the weather in many ways. You collect as much evidence as you can then you make a logical prediction. The more evidence you collect the more accurate your prediction. But at the end of the day you are still making a prediction on what a buyer will offer and what you are willing to accept. If your asking price is too high you get to keep your home, just like if the buyer offers too little, they get to keep their money.

Here is the tricky part, there is a much greater emotional connection to the value of your home than tomorrow’s weather! Therefore removing the emotion out of the equations is a huge part of estimating your home’s value. It's only natural for a homeowner to "feel" like their home is worth more that what it actually is worth.

Ultimately, you will only know the true value of your property once the home is put up for sale.

Your home is more than just a place to live; it's an investment. Whether you're considering selling, refinancing, or simply curious about the current market value of your property, understanding what your home is worth is crucial. So, how do you determine its value? Below are the top three ways you can being to "collect" evidence on the value of your home.

Comparative Market Analysis: One of the most common methods used by real estate professionals to determine the value of a home is through a Comparative Market Analysis (CMA). This involves analyzing recent sales of similar properties in your area. By comparing factors such as size, location, age, and features, agents can estimate the market value of your home.

Appraisal: Another option for determining your home's value is to hire a professional appraiser. Appraisers assess various factors, including the condition of your home, recent renovations or upgrades, and the local real estate market. While this method typically involves a fee ($500-$750), an appraisal provides a comprehensive and unbiased valuation of your property. Appraisals are 50-100 page reports generated by licensed appraisers. They are also used by banks when determining how much money to lend on property.

Online Valuation Tools: In today's digital age, there are numerous online valuation tools available that claim to provide instant estimates of your home's worth. While these tools can be a useful starting point, it's important to take their results with a grain of salt. They often rely on algorithms and public data, which may not accurately reflect the unique characteristics of your property.

Understanding the Factors that Influence Value

While the methods mentioned above can help determine the approximate value of your home, it's essential to understand the factors that influence its worth:

Location: Proximity to amenities, schools, and transportation can impact property values.

Size and Layout: Larger homes and those with functional layouts tend to command higher prices.

Condition: Well-maintained properties typically fetch higher prices than those in need of repairs.

Upgrades & Renovations: Recent upgrades such as kitchen remodels or bathroom renovations can increase a home's value.

Economic Factors: Local economic conditions, job growth, and interest rates can affect property values.

Uniqueness: If there are certain features that make your home very unique from the other "comparable" homes, this can have a major affect on the value of your property, you want to discuss these unique features with a real estate professional, and see how they affect your home's value.

Get Your Instant Home Values Using Homebot.Ai

Some people want to know because they plan to sell soon, while other just like knowing the value.

We have a great service that provides you with a monthly update on the value of your property through homebot.ai. It’s a great tool we have been using for a while now and I thought I would offer it to everyone that reads our blog.

To start getting your home value estimates sent you to for free via email, simply click on the link below and and answer a few simple questions.

You’ll then start getting a home value email once a month, it’s free, there is no obligation and you can stop receiving these emails anytime you like.

We have over 500 homeowners that love getting their instant value emailed once a month, so almost all of them choose to just keep receiving them. So fill out your home address down below and get your instant home value today!