When one wants to buy or sell real estate, it’s critical to get an accurate estimate of how much a house is worth. Calculating property taxes or applying for a home equity loan are other reasons why people need to know how much their house costs.
What can influence a property’s value? Size, layout, curb appeal, upgrades, and maintenance are the obvious aspects. On top of these, the neighborhood, proximity to schools, shops, restaurants, and highways, interest rates, and market demand can also have a say.
When you factor all these in, a property valuation can seem complex and overwhelming. But there are ways to simplify it.
From a Nuwber reverse address lookup to comparative market analysis, a number of simple and reliable techniques are available to make home valuation easier. Keep reading to learn more.
1. Review Comparable Properties
The easiest way to get an idea about the current market rate of a house is to compare similar properties.
Now, this is not something you can rush. You will need to spend some time to get an accurate estimate. But this technique is still worth the effort, especially when you are new to advanced valuations. Plus, it is free!
So, how does it work? Head over to a few real estate marketplaces, like Zillow and Realtor.com, and go through their listings. Identify properties that match yours or the one you plan to buy. Pay attention to the square footage, home type, location, layout, and condition when you are comparing. Then, check what prices they are listed or were sold at.
Keep in mind that the asking price doesn’t always reflect the actual market value. Many sellers set their prices a bit higher to leave room for negotiation and factor in closing costs or other expenses. Some can also sell below the market value if they are in a hurry to close the sale.
2. Run a Reverse Address Search on Nuwber
Nuwber’s people search directory has extensive information about properties across the U.S. This makes it a reliable resource when you need to figure out how much a house is really worth.
To perform a reverse search, click the address button on top of the site’s search bar and enter the house number, street, city, state, and zip code.
If you are unsure of the exact address but know the owner’s full name or contact number, you can run a name search or a reverse phone search.
For each address, Nuwber will pull up public records to provide a property fact sheet and details about neighboring houses—from home type and average price to the year built.
You can even find other information, like estimated household income and sex offenders living nearby, that could help gauge property value or may have an impact on it.
3. Try an Online Valuation Tool
When you need a more precise indication of a property’s value, you can generate an estimate with an online valuation tool.
But the formulas used for calculations can vary between platforms. The criteria and the weightage assigned could also differ. So, for best results, check reviews and select several tools rated for higher accuracy.
The FHFA House Price Index Calculator is a popular tool among many home buyers and sellers. It is a repeat-sales index that tracks single-family house price movements.
Reputed lenders and marketplaces, like Bankrate, Chase, Zillow, and Redfin, also offer valuation tools on their websites.
These often use home details, list prices of comparable properties, previous sale prices, tax assessments, overall market conditions, and other important data in their valuation models.
4. Speak to a Real Estate Agent
Real estate agents have access to far more information than the regular buyer or seller. They constantly deal with properties and understand how markets move, what buyers look for, and which rates different properties sell at. So, real estate agents can be a reliable point of contact to get an idea about a house’s worth.
The good news is, many of them offer their valuation services for free or at a small fee, especially when they know you will hire them to sell or buy a property.
They usually provide what is called a comparative market analysis (CMA). It is an estimate derived from comparing similar houses sold in the area. This report considers a home’s location, type, condition, size, age, and many other factors to generate a more realistic price range at which it could sell.
If you intend to list a property, your real estate agent might even give you a few tips on how you can increase your home’s value based on the CMA.
5. Contact an Appraiser
Lenders typically rely on a professional appraiser to establish a property’s appraised value so they can avoid lending beyond it.
You can hire an appraiser, too, when you are getting ready to sell or purchase a home.
A professional appraisal involves a comprehensive report that takes into account the house details, comparable properties, neighborhood and location, current market rates, and similar factors.
Of course, hiring an appraiser can be a costly affair. Right now, the cost of an appraisal in the U.S. is around $537, on average. But this can change depending on the property type, square footage, condition, market demand, and complexity of the report.
Another determinant of the appraiser’s fee is the loan. Appraisals for government-backed loans like VAs, for instance, can often cost more.
A Few Final Thoughts
The techniques listed in this article range from basic self-assessments to detailed appraisals by professionals and cover both free and paid resources.
Remember that they all have merits and drawbacks. So, using a combination of them is a better option than relying on one.
Another important thing to note is that a property’s current valuation is not set in stone. There are steps you can take to increase it if you plan to sell.
Obviously, there is little you can do to influence interest rates or general market slumps. But you can certainly make your house more attractive and boost its value by, for example, updating fixtures, giving a fresh coat of paint, and improving the curb appeal.