HOW TO FIND OUT HOW MUCH YOUR HOUSE IS REALLY WORTH | Charlotte NC

Dated: July 16 2020

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HOW TO FIND OUT HOW MUCH YOUR HOUSE IS REALLY WORTH | Charlotte NC

What is the value of my home?  How can I truly find out how much my house is worth?  These are very common questions homeowners ask and quite frankly, potential home buyers would like to know as well. 

I will be talking about home valuation and the best ways to determine what a home is worth. Let’s talk about the different valuation terms….the first one is called market value, the second is the appraised value and the third one is tax or assessed value. 

Of the three, everyone is more interested in the market value.  The market value for a property is the price that buyers are willing to pay to purchase it.  This is what I will be discussing today. But before I proceed, let me tell you what those two other values are.

The appraised value of a home is the value at a specific point in time as determined by a licensed appraiser. An appraisal is usually a requirement by the lender to obtain a home loan.  The appraised value is used by the loan underwriting team to determine how much money it should lend to cover the purchase of the home.

The other value I mentioned is tax value or assessed value which is a valuation placed on a property by a public tax assessor for the purpose of taxation. The calculation of property tax is based on a County’s assessment rate. I will not dwell much on this topic today.

So, why is home value important? Let’s talk about that first.

Knowing your home’s value allows you to evaluate what to price your home when it’s time to sell.  When buying a new home, you can determine whether a listing is priced fairly before making an offer. Another important factor not to be overlooked is knowing whether your home is worth refinancing, or perhaps knowing whether you can apply for a home equity line of credit and achieve that long-time goal of remodeling your home.

Why do you want to know what your home is worth?

I can’t think of any reasons why you would want to know except: 1) you are thinking of selling your home due to relocation; 2) you are thinking of refinancing because the rates are unbelievably low that will save you money on your monthly; or 3) you’re just curious because your neighbor just sold their home fast and for more money. 

What is the value of a home?  A home is worth what someone is willing to pay.  That is the simple answer to that question.

So, what are the factors that affect the value of a home?

In a nutshell, here’s what I can tell you:

1)         Neighborhood comps - One of the best indicators of your home’s value is the sale price of similar homes in your neighborhood that have sold recently.

2)        Location – Is it in proximity to shopping centers, medical facilities, freeways and highways? Are you in a quiet cul-de-sac, or backing up a busy main road or on a lake?

3)        What is the quality of schools in your area?

4)       What is the age and condition of your home? Typically, homes that are newer appraise at a higher value. In an older home, have the critical parts of the house like plumbing, electrical, the roof, and appliances been replaced? Not to be overlooked is that a cluttered and dirty house can decrease its value.

5)       What upgrades and updates have you done to your house? Did you add a screened porch? Did you remodel your bathroom? Did you finish your basement? Bear in mind that the impact of a project depends on the market you’re in as project demand is location-specific.

6)       Lastly, the size and features of your home. The number of bedrooms, bathrooms, garage and square footage will have to be taken into consideration. Do you have a media room, fenced backyard, screened porch, irrigation system or a pool?

With everything available on the internet, you can check Zillow, Realtor.com, Trulia, Redfin, etc., to get estimates.  But odds are they will not provide an accurate value of your home.

Here are four methods to determine your home’s value with varying degrees of accuracy:

1)      Use the automated valuation model (AVM) typically offered by Zillow, called the “Zestimate”. Be wary of zestimates as they are infamously inaccurate and can be significantly higher or lower than your home’s actual value. If you wish to rely on a pure modeling system, use our online tool called HOMEBOT.  Go to this website… https://hmbt.co/cGija6

2)      Get an appraisal. This is probably the most accurate valuation of your home but will cost you at least $550 depending on the size of your home.

3)      Ask a real estate agent. This is a free consultation we offer to home sellers. We can give you a FREE Comparative Market Analysis (CMA) over the phone, but to give you a better valuation of your home, we need to come out to see your home in person.  This is a free, no-obligation service we offer and you can contact me at 704-975-2429.

4)      Do your own CMA.  Did you know that homes sales over the last 6 months within 2 miles of your home affect its value? This means you must review all the homes that have sold in the neighborhood within the last six months. You can’t find this info online, and if you receive postcards or mail outs from real estate agents, they will only show the summary.  You see, I compile a list of all the homes that have sold in the last 6 months with all the details necessary to make a comparative market analysis of your home. Just sold homes in your neighborhood are the basis of a full-fledged appraisal. Give me a call at 704-975-2429 so I can send you this very important list to help you determine your home’s true value.  

Here are some misconceptions about how to determine the market value of your home:

1)  I can sell my house for X amount because I paid this amount plus appreciation through the years.  Reality: Your home’s market value is not based on how much you paid for it.

2)   Value is based on your opinion of how great your home is. Reality: Thinking that your home is the best in the neighborhood does not mean you will get the top market value.

3     Your home’s value is the assessed value from your County. Reality: The County’s assessment may not reflect current market conditions and is often significantly different from market value.

If you want to know how to accurately determine your home’s value, ask me for a free comparative market analysis. Visit our website at WhatsMyHomeWorthToday.com.  Make sure to put your name, the address of the property, your phone number and email address.  As I mentioned, this is a free, no-obligation service we offer. I will provide you the requested CMA.

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Albert & Lynn Alvarez

Unparalleled Customer Service! Meet The Ally Group team member, Lynn Alvarez. You need an educated, caring and knowledgeable real estate professional who stands by you through the whole process. Tha....

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