Home Valuations
TWO ACCURATE WAYS TO
PERFORM HOME VALUATIONS
HOW IS A
VALUATION PERFORMED?
Comparative Market Analysis
AComparative Market Analysis (CMA) is a tool utilized by real estate agents to determine a home’s value. It assesses similar homes that have recently sold in the same vicinity. Agents identify comparable sales and perform a sales comparison. Typically, an agent will find three homes that have recently sold, closely resembling and situated near the home being evaluated. Each property is then analyzed to identify differences from the home in question. Once these differences are accounted for, the price of each comparable is adjusted to estimate what it would be if it were identical to the home being valued in the current market.
BASED ON A PROFESSIONAL'S OPINION
An appraisal is an impartial evaluation of a home’s value based on a professional’s expertise. Mortgage companies typically use it for home purchases and refinancing. A lender usually requests a home appraisal, with the cost, sometimes up to $500, covered by the homeowner. An appraiser conducts a thorough visual inspection of the home’s interior and exterior, considering recent sales of similar properties and market trends. The appraiser then prepares a detailed report on the property, which includes an exterior building sketch, a street map showing the home and any comparable sales, photos of the home and street, an explanation of how the square footage was calculated, and any other pertinent information.
TWO ACCURATE WAYS
TO PERMORM HOME EVALUATIONS
WHY IS A
VALUATION
IMPORTANT?
Lenders determine the loan amount based on the value of your property, usually 75% to 96.5% of the mortgage you have. Knowing you are secure for financing.
If you’re undertaking home improvement projects to meet resale value, it’s a good idea to price your home to the market; if your home is already on the high end for your neighborhood, excessive improvements could make it harder to sell. By getting an appraisal, you can compare your home to other homes in the area and use this information to guide your home improvement decisions.
If you’re looking to borrow cash against your home, a Home Equity Line of Credit (HELOC) could be a great option. To qualify, you typically need to have a certain amount of equity in your home, with most lenders requiring at least 20% Obtaining a home valuation will help you determine if you qualify and will be used by the lender in the loan decision process.
Though it’s not a necessity, simply knowing the value of your home is good information to have. It will help you plan for the future and deal with unforeseen circumstances when you might be in a position that requires extra money or a quick relocation. Knowing how much equity you have in your home and how much you may be able to borrow against it or sell it for will help you respond to any financial curveballs that life throws at you.
OBTAIN AN ESTIMATE
WHAT'S YOUR PROPERTY WORTH?
Home valuations provide essential insights that can aid in future planning and informed decision-making. It’s wise to stay updated on your home equity and understand how much you could potentially borrow against it or sell it for. Our tool offers a more comprehensive and accurate assessment than major real estate portals. For the most precise valuation, consider contacting us to discuss a tailored Comparative Market Analysis or an appraisal.
WHAT IS A HOME VALUATION?
A home valuation assesses the current market value of a residential property. It’s vital for real estate transactions, as it helps prevent over-borrowing and financial losses. When obtaining a mortgage, the home serves as collateral. If the borrower defaults, the lender might sell the property to recover the funds. A detailed home valuation ensures the lender can recoup costs if the mortgage isn’t fully repaid.
HOW IS THE VALUATION OF MY HOME CALCULATED?
Your home’s value is determined through a blend of factors such as location, age, size, condition, any upgrades or renovations, and recent sales of similar homes in the area. It also considers current market trends and local conditions. The valuation tool is dynamic and can be influenced by factors like inventory trends, interest rates, and buyer sentiment.
HOW ACCURATE IS THE ONLINE HOME VALUATION?
Online home valuations are a useful starting point, offering a general estimate of your property’s worth. They might not account for recent renovations, unique features, historical value, architectural significance, and subjective market perceptions that could affect your home’s actual market value. For the most precise evaluation, consider arranging an in-person appraisal.
