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The importance of knowing the accurate value of your home

It’s important to know the value of your home, whether or not you plan to sell in the near future. It’s even more important to know the value of a home you may be interested in purchasing to compare its market value vis-à-vis its asking price. Luckily, it is now easier than ever to get an accurate idea of how much homes are worth.

Here’s how to find out the value of a home and why it’s crucial for you to know.

What kind of home can you afford?

Figuring out the value of a home allows you to gauge the kind of home you can afford. By the same token, you have a better idea of the price range you can expect to sell your house for. Credit lines, insurance premiums, and property taxes are all based on the value of a home, which makes it a crucial piece of information to obtain and understand. It also means that you can stay prepared for all outcomes.

What determines home value?

There are many determinants when it comes to assessing the value of a home – some you can control, whereas others location based. Neighborhood factors such as crime rates, quality of schools, and amenities all play a pivotal role in valuation. Aside from features including the age of appliances, the number of bedrooms, and the size of the yard, square footage plays a key role. The economy and general trends can also have an effect on home value.

How do you calculate the value of a home?

There are a number of ways to calculate the value of your home. The easiest way is to use a home value estimator tool. These tools can be found online, and most are free to use. You simply enter the address of the home, and the tool will give you the predicted value. A confidence score indicates how reliable the figure is, based on the information the tool has. This can be a good start to get an idea of the general price range, but it is not the most accurate.

Another way to get a valuation for a home is by conducting a comparative price analysis or comps. A real estate agent with an expert understanding of the local area can figure this out based on the recent sales history of similar homes in the neighborhood. Comps are usually done as part of the selling process, but you can ask an agent for this service at any time.

Allow margins of error for both methods. The most objective way to find the value of a home is through a professional appraisal. An appraiser takes a number of factors into account such as the market, the neighborhood, and comparable properties. An appraiser will inspect the entire home and provide a detailed report that backs up the figure he comes up with. This is the most accurate way to find the value of a home, and an appraisal is a usually mandatory step before lenders approve a mortgage.

How to price your home for sale?

It is vital to have a well thought-out pricing strategy when it comes to selling your home. The listing price should be competitive and reflect the true value of your home. Rather than setting a high price, consider the lower end of your price range. A more modest asking price can attract multiple bids and potentially lead to a bidding war. Too high of a price means risking the possibility of having your home languish unsold on the market for far longer, which will reduce its value.

You now have a clearer idea of how to find the accurate value of your home. This allows you to formulate a pricing strategy for selling. It will also give you an idea of whether it’s worth your while to renovate, given the condition of similar houses in the neighborhood.

If you are looking to sell your California Central Valley home in the near future, then it is essential to choose an experienced and reliable real estate team such as Soldavi Realty. We work hard to secure a fast sale at the best price. Call 209.383.3000 today.

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