What Is Your House Worth?
If you’re thinking about selling your home, then it’s time to start figuring out how much it’s actually worth. Home values can fluctuate over time and there are a lot of important factors that are involved with that final number.
Some contributing elements that determine your home’s value are out of your control. But there are also simple things you can do to increase it.
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Here’s everything you need to know about learning your home’s worth and ways to improve it.
How To Determine Your Home Value
Determining your home’s value can be confusing; there are a lot of contributing factors that affect its worth. Since your home value will ultimately determine the listing price, it’s important to take the time in finding the most accurate number.
There are basic specifications about your home that play a major role in its value. The neighbourhood, square footage and age of your property are big contributors. Newer homes tend to be appraised at higher value because buyers typically want it to be move-in ready. Upgrades and new repairs on plumbing, electrical, the roof and other similar factors will increase the value on a home of any age.
Here are three ways to help determine your home value.
Use online evaluation tools
Real estate websites like Zillow, Redfin and NerdWallet all have search engines that help determine your home’s worth. They use public records and some information entered about your home to give a ballpark estimate that gives you a good place to start. Use multiple websites to see if there are any varying results between each appraisal.
Get a Comparative Market Analysis
By seeking the help of a realtor, these experts will do a Comparative Market Analysis (CMA) by using information from other recently sold houses that are similar to yours. They consider factors like the size, location, number of bedrooms or bathrooms, home type and more to help decide on a number.
Hire a professional appraiser
This method is similar to the CMA, but appraisers utilize more details by factoring in the current real estate market. NerdWallet says an appraiser is used by 28 percent of U.S. homeowners to find how much their home is worth. Appraisers will look at the region’s market, characteristics of the house and the land it sits on, and compare it to other houses in the same area. You’ll have to pay the professional out of pocket, but it could be worth avoiding the hassle of trying to figure this information out for yourself.
Most homeowners will use a combination of these strategies to help determine their home’s worth. Once you’re set on a number, the next step would be to increase the value with simple improvements.
How To Increase Your Home Value
There are things you can do to help raise your home value after learning what it’s worth. Although location and the state of the real estate market are out of your control, home improvements and upgrades are something you have the power to change.
These remodels and upgrades will cost money, but it will be worth it in the long run. HGTV reports that home improvement projects cost only about 25 cents on the dollar. The remaining 75 cents goes directly into increasing the home’s value. Though it’s a costly process, it could help to sell your home faster and at a higher price.
Here are some things you should focus on if you’re trying to raise your home’s value.
Start from the outside
Curb appeal is not only a major component to increasing your home’s value, but it also piques the interest of potential buyers. Easy ways to instantly give your home a facelift include painting the garage door, front door and the actual house if needed. Planting flowers is another way to add some instant appeal.
Focus on the principle rooms
The kitchen and bathrooms are two rooms that will greatly impact your home value. Modernizing the kitchen’s style and appliances will appeal to buyers. By simply adding new flooring and a few current features in the bathroom, owners could see a 70 percent return on their remodel investment.
Get your home inspected
There are things in your home that you might not even realize need improvement. By hiring a certified home inspector, you’ll get the latest information on its condition and have the chance to fix any problems before determining your home’s value. Keeping records of any home inspections you’ve had over the years will show potential buyers that you’ve properly maintained the condition of your home.
When deciding how to pay for these remodels, the best option for you will depend on your current financial situation. You can use a credit card, take out a personal loan or take on a new line of credit. You could also pursue a cash-out refinance and put the money towards the improvements. Talk to a financial expert and see which payment method is the best fit for your needs.
Learning Your Home Value Is A Good Idea
Even if you don’t plan on moving right now, it doesn’t hurt to be proactive and start thinking of ways to raise your home value. There are a lot of benefits to knowing what it’s worth ahead of time.
Understanding what your home is worth early on will also give you a better idea of what you’ll be able to afford next time you buy real estate. For example, you might realize your home isn’t worth as much as you initially thought it was. By discovering this before you decide to sell, you’ll have time to remodel accordingly and implement ways to boost its worth.
Knowing the value sooner than later will make it easier on your wallet too. That’s because you’ll be able to invest your money in improvements over a longer period of time rather than all at once when you decide it’s time to sell. You can avoid possible financial burdens and the stress that often comes with selling your home.
If you want to learn about easy ways to improve your home’s appeal, you can find a lot of inspiration online. You should also take the time to find real estate experts that are local to your area. They’ll be able to use specific criteria and conditional factors to determine what your house is worth.