Since not all properties have the same value, it is crucial to know the worth of a home that one owns or wants to purchase. With the property market constantly evolving, several factors come into play to determine the value of a house. For instance, home value by address will keep changing depending on the development of the neighborhood. There are some ways one can know the true value of a home.
Use online valuation tools
Several online valuation tools help determine home value by address and other factors. Typically known as automated valuation models, these are home value estimators offered by real estate platforms and lenders. Using mathematical models, these tools calculate an estimated value of a home. Public records such as deeds of ownership, tax assessments, and property transfers are used by these tools. In addition, they scan the recent sales of similar properties in the same area to generate the estimated value, which can be considered as the starting point in determining the true value of the house. But the models do not consider the condition of the property, which is generally a significant factor in determining the actual value of a house. So, it is always a good idea to use these tools along with other methods to find out the actual value of a property.
Check the FHFA House Price Index calculator
The House Price Index (HPI) calculator of the Federal Housing Financing Agency (FHFA) is another good option to get an instant home value estimate. The tool uses a database that has information on mortgage transactions since the 1970s. Using this data through a repeat sales method, the calculator can track the changing value of a house across several sales. This information is then used to estimate fluctuations in the values of a specific real estate market. While this tool can be useful, it is crucial to note that it is not adjusted for inflation.
Explore websites of tax assessors
There are tax assessor websites for each city and county, which can be used to find out the value of a home by address. Since the properties are assessed at various times of the year for property tax calculation, these assessed values are typically not the same as the market value. For example, a house may be assessed for tax in January. But the property owner may list it in September of the same year using the values of January. Between January and September, it is highly likely that the market values will fluctuate. So, one must not solely depend on the property values obtained from these sites. One can use these as estimates along with other tools to determine the actual value of the home.
Contact a real estate agent for a comparative market analysis
For a more accurate home value, it can be helpful to ask a real estate agent to do a comparative market analysis (CMA). Through this, an evaluation of the home and the market is done to get an estimated value of the property. While these are not as highly detailed as professional appraisals, CMA is typically used for listing purposes. Often, local real estate agents offer CMA services for minimal or zero cost.
Assess the value of similar properties
Known as comps, comparable property rates are one of the best factors for determining the home value by address. By going through these comps, one can find out the market value of a property directly. To do this, make a list of the various properties that are similar to the one that needs to be sold or bought. These homes must have similar size, condition, location, and improvements.
Enlist the services of a professional appraiser
Generally, lenders call professional appraisers to appraise a property before approving a mortgage. But property owners or buyers can hire a professional appraiser at any time to determine the true value of a home. Typically, appraisers evaluate certain aspects related to the property.
- Location: The neighborhood, city, and region where the house is located.
- Property: The characteristics of the house along with improvements and repairs done and the actual land on which it has been built.
- Comparable properties: The listings, sales, cost, depreciation, vacancies, and other aspects of similar properties in the same address and market.
Popular tools to evaluate home value by address
Several online tools can be used to find out the value of a home by address. Homeowners and buyers can use some of the top tools to get a reliable estimate.
Redfin
This website displays its own estimates of the values of homes on each home profile. Updated on a daily basis, these estimates are based on several data points that include information about the home, the neighborhood, the overall housing estate market, and so on.
Zillow
Zestimate is Zillow’s tool that requires only the address of a home to determine its value. It uses factors like the age of the home, the number of bedrooms, list price, comparable homes, prior sales, tax assessments, and housing market trends.
Realtor
This website has several tools that help with home valuation and market value comparisons. Plus, there are a lot of resources for property buyers as well as sellers looking to find out the value of a home.