Have you ever wondered how much your home or property is worth? It can be tricky to estimate the value, but you can come up with a good approximation with a bit of research and some simple math. In this blog post, we’ll give you a few tips on how to estimate the value of your property. Keep reading for more information!
Checking Worth of Similar Properties
The easiest way to estimate property value is by checking the selling price of similar or nearby homes. You can consult online listings or ask a real estate agent for more information.
For example, if you want to determine how much your house is worth, you could compare it to recently sold properties in your area. You could also compare your house to recently-listed properties that are currently available.
Online Listings
When checking a listing in online listings, check carefully and avoid basing your estimations on “list price,” which can be different from what the seller wants for the property because of real estate agent commissions and negotiation. Also, note whether the property is sold as a “price per square foot” price.
In addition, you could check out your neighborhood and see what other houses have recently been listed for sale or sold. Refer to listings on the MLS (Multiple Listing Service), a collection of all real estate properties available in a particular area that real estate agents maintain.
Real Estate Agents
You could also ask a real estate agent to help you estimate the value of your home. If you’re not thinking about selling any time soon, though, they might be more hesitant to help appraise your property. However, they may still give you an idea or two on how much similar homes are worth in your area, which is still helpful information for you. Again, be sure to ask about properties similar in location and size to yours.
Steps for How to Estimate the Value of Your Property Are as Follows
Look at properties that have recently sold
The first and foremost step for estimating the value of your property is to look at similar properties in the area that have recently sold. From this, you can determine what percentage of a typical listing price is equal to a typical selling price.
Use this percentage to determine the estimated market value of your home
You can use the sale price to determine the estimated market value of your home by ascertaining what percentage of a typical listing price is equal to a typical selling price. For example, if the house were listed at $500,000 and sold for $480,000, this would be 90% of the listing price
Compare the estimated value to the sale price
Once you have determined what percentage of a typical listing price equals a typical selling price, compare this with your home’s estimated market value by seeing what percentage of your house fits in with this range.
Although the steps for estimating the value of your property can appear somewhat daunting and complex at first glance, they are not entirely difficult to comprehend and follow.
Bottom Line
Figuring out your home’s value doesn’t have to be complicated. With a few simple steps, you can come up with a reasonable estimate that will help you when it comes time to sell or plan for the future.
Contact Intro to Real Estate today to learn more about real estate investing and generating passive income. We would be happy to help! Wishing you great success in all you do!