2023 National Home Valuation Week
Its officially the 2023 National Home Valuation Week this week, from April 3rd – 7th. So whether you're selling your home, want to refinance, want to know how much equity has accrued, or understand market trends better; knowing the value of your home can help.
Keep in mind that the process of getting a home valuation is complex and includes a lot of details that combine to play a role in determining how much your home is worth; and reaching out to a local real estate professional will get you the best estimate.
How Can I Estimate the value of my home?
There’s more than one way to determine the value of your home. Some of the best and easiest include:
Using an online valuation tool, such as Percy. If you just want a rough estimate for your own personal knowledge, using an online valuation tool to get a free home appraisal should suffice. However, if your goals include refinance or sale, home valuation tools typically don’t have enough data to provide an accurate valuation. To get your free valuation try our tool: https://sellmyhome.wkre.com/
Talk to an experienced real estate agent. If you’re considering selling your home, consulting a real estate agent is an affordable choice because our agents at WK Real Estate will provide a comparative market analysis (CMA) as part of our services.
Request a professional appraisal. If you’re considering accessing your home’s equity in a home equity line of credit or a cash-out refinance, your lender will typically require a third-party appraisal, which can cost several hundred dollars or more.
How does Percy’s online home value estimator work?
Online calculation tools use information you provide about your home, along with info collected from public records, to calculate an estimated value of the property. Pretty much all online valuation tools have limitations. Although they rely on hard data, rarely do they factor in your home’s conditions, upgrades, or additions.
However, to get a basic understanding and to start, you can use WK’s free home valuation tool: https://sellmyhome.wkre.com/
Can I get a home valuation from an agent if I’m not selling my home right now?
Most real estate agents provide you with a comparative market analysis (CMA) as part of their listing services. A thorough CMA, which can surpass 30 pages of detailed analysis, is a tool that should provide a professional valuation of your home and put it in context with comparable properties in the neighborhood (known as comps) as well as the current market. Some agents charge $100 to $200 for compiling a CMA; however, our WK Real Estate agents will charge you nothing for a CMA.
What factors impact appraised home value?
Some things boost your home’s value, some things decrease your home’s value. There are things on both of those lists that can’t ne change; but there are also things on both lists that can be!
Factors that you can’t change:
Location. The neighborhood, the street, the school district, the view; all these factors impact your home’s desirability and value, but sadly, there’s nothing you can do to change them. According to the University of Washington’s research, homes closer to nature parks and open spaces have an 8%-20% higher value than comparable properties. Similarly, data from the National Association of Realtors (NAR) reveals that 26% of recent homebuyers were influenced by the quality of their school district when looking for a new home.
Supply and demand. Inventory fluctuates according to market conditions along with the law of supply and demand. When supply is low and demand is high, your home’s value will increase. Conversely, when supply is plentiful and demand is low, your home’s value will decrease.
Age of home. Similarly, to your location, you can’t change when your house was built. In some cases, an older home can be worth more, due to architectural details lacking in new construction. However, condition is often more important than age.
Real estate comps. Comparable sales mirror the current market and are historical facts. But because most real estate agents prefer comps no older than six months, it’s a revolving number, and as the market fluctuates, so do the comps, reflecting on your home’s value at any given time.
Factors that you can change:
Size and livable space of your home. You can build an addition or refinish your basement or attic to add more square footage of livable space to your home, which also adds more value at the same time. Be aware that basement square footage doesn’t add as much value as above-ground spaces and may not be included in your home’s overall square footage. Adding a mother-in-law suite may increase the value of a home by as much as 38%!
Condition of your home. The better condition your home is in, the better it will appraise. Home appraisers rate your home’s condition based on the amount and degree of repairs required.
Upgrades and updates. The right upgrades, updates, and remodeling can improve your home’s value. For example, well-landscaped homes are worth 1%-10% more. Even minor updates like new fixtures and paint can add to your home’s value; however keep in mind the cost of a home improvement if you’re looking to sell, as you might spend more in renovations than you get back in a sale.
There’s a lot that goes into getting an accurate valuation of your home and it can often be overwhelming, and we get that. That’s why at WK Real Estate can help you either with a simple online home valuation tool or a detailed CMA of your home with no obligations. Interested? Feel free to reach out to any of our agents.