Are you wondering what your house costs? If you’re planning to sell your home or have other investment ideas in mind, it’s important to get an accurate assessment of your home’s value. Knowing the worth of your home allows you to price it competitively to draw in buyers once it hits the market. To price your California home correctly, check out these 5 ways to obtain the value of your home.
- Use online estimators
Technically called automated valuation models (AVMs), online estimators offer a fast and easy way to determine your home’s value. They’re what 22% of US homeowners use to determine how much their homes cost in 2018. Just Google “home value estimator” and you’ll come across several websites like Zillow, PennyMac, and NerdWallet that offer this tool.
AVMs predict the value of your home based on the latest sales and pricing trends in the area. But since most of them are just collective estimates based on limited data, they may not always give accurate results. Ask your real estate agent for a professional-grade AMV for a more reliable estimate.
- Use the House Price Index Calculator of the Federal Housing Financing Agency
The Federal Housing Financing Agency’s house price index (HPI) calculator computes your home’s value based on single-family home sales and loan data over time. It tracks down the average appreciation rates of homes in a given area then uses that data to estimate how much they will be worth at a given time. This means you’ll be able to see how much your home has appreciated through the years.
However, note that this calculator doesn’t compute for the actual value of your home since it doesn’t consider things like condition, age, and home improvements.
- Hire a real estate appraiser
Nothing beats calling in the experts to get an objective and accurate valuation of your home. As a homeowner, you can hire a real estate appraiser any time you want for a complete assessment of your home from the inside out. They will look at things such as the neighborhood, amenities, number of bedrooms and bathrooms, and lot size.
They will also consider recent sales of similar properties in the area and current market trends. If you feel like your home was valued too low due to unfavorable market conditions, you may be able to get them to reconsider if your home is noticeably in better shape than others.
A standard appraisal costs around $300 to $400 depending on the size of your home.
- Get a competitive market analysis (CMA)
A CMA is a thorough analysis of the recent sales of similar homes in an area. Real estate agents usually perform these for clients who want to sell their home or want to make an objective offer.
Though not as in-depth as getting a professional appraisal, you can count on CMAs as an accurate alternative since they employ similar methods. However, their effectiveness relies heavily on comparable homes. This means that homes in the same neighborhood that have around the same size, number of rooms, age, and other similar features. It may be better to call a professional appraiser if your property has many features other homes don’t have.
- Get a broker price opinion (BPO)
If you want a quicker and less expensive alternative to a home appraisal, ask a real estate broker or qualified firm for a BPO. Though not an official assessment, a broker price opinion is an expert’s assessment of your home based on factors like physical features, neighborhood quality, and the state of the market. A BPO is also more thorough than most CMAs, making them a worthwhile option.
There are two types of BPOs:
- Interior BPOs are extensive, requiring you to give brokers access to your home so that they can review its full condition. Expect them to inspect interior features, estimate costs for needed repairs, and take note of any improvements, among others.
- Drive-by BPOs assess your home based on its external appearance, neighborhood development, and similar homes in the area. They don’t evaluate the interior of your home.
Do you want to know the value of your property in Los Angeles? For an objective estimate, contact me, Realtor Toni Patillo. I can also help you sell your home in no time and for the best price possible. Call 310.482.2035 or email toni(at)ToniPatillo(dotted)com to get started. We’re the #1 Real Estate Brokerage in the Nation with multidimensional services and a trusted network of advisors.