The Best ways to determine the Fair Market Value of Your Home
Whether you are planning to sell your home or want to give it for rent, a careful assessment of the fair market value of your home is essential. The fair market value means the price you could expect to get if you were to sell it that day. The market value is important for selling and determining your property's equity and investment strength. If you want to sell or borrow against your property or its equity, you must determine the fair market price first.
The market value is equally important in the case of buying a home. If you plan to buy a home, checking the market value first can help you avoid money, and you can grab a fantastic deal. The market value of a home is based on various factors such as external elements, which include the property's condition, interior features like quantity; size, etc., location, supply, and demand.
If you want to know the accurate market value of your property, then take a look at some best ways to determine the value:
You can roughly estimate your home's fair market value for sale or long-term renters using various online tools such as Zillow or PennyMac. To get an accurate value for your property, you must provide correct information. Do not forget to provide information regarding any upgrades or remodeling work done in your house since you purchased, as this can significantly raise the value of your property.
Conduct a comparative market analysis:
One of the best ways to estimate the value of your property is to run a comparative market analysis (CMA) which will compare your property with nearby, similar properties. It will provide the fair market value of your property by comparing matching and similar features of other properties. For conducting CMA, you can take help from a local real estate agent with little or no cost.
An appraisal is a professional opinion of property value. Hire a home appraiser to know the market value of your property. Conduct two or three different appraisals to get a more rounded value and then choose the mid-value appraisal or compute the average value of all three appraisals.
Check recent sales prices:
You can also find the fair value of your home by locating the recently sold houses in your region that are similar to your home in size, square feet, condition, features, and age. Check the price of recently sold properties and take average price of all properties to find the mean sale price. After getting the mean sale price, repeat the same process for square feet and take its average value. Multiply this value with the number of square feet in your home to get an accurate estimate for the fair market value of your home.
Review recent property tax assessments
For reviewing recent property tax assessments, you can contact your local taxing authority to request a copy of the property tax assessment for your house. You can also calculate the assessment by finding the taxation rate and percentage of the property value. Divide the yearly tax paid by you with the rate of tax.
As discussed above, the fair market value of your home is affected by various factors like location, the plot on which it stands, nearby facilities, recently sold homes, and current market prices. You can calculate your property's most accurate market value by using all the above techniques. After knowing the estimated fair value of your property, you can market your home for sale by adding beautiful photos of your home on various house selling or social media sites.
If someone is interested in buying your home and asking for negotiation, take your time to think. Don't make decisions immediately or make him/ her feel that you are in need of the sale, as this can result in a lower value.
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