What do you mean when you say ‘home value’? Your home value is how much your home is worth, it is the home’s monetary value if it gets sold in the market today. Why would you want to know how much your home is worth? Well, if you are trying to sell your home in Lake Elsinore or anywhere, it helps to know how much it can sell for and when is a good time to sell it. Knowing your home value can also help you decide how much wiggle room you have for any repairs or upgrades. Your home is a major financial resource for your and you want to make certain that you are making a good evidence-based decision while selling your home.
Following are 3 ways that can help determine the valuation of your home:
- Online home valuation tools
In today’s virtual world, there are hundreds of online home valuation tools available to homeowners. Most of these online home valuation calculators are available to you at no cost! These online resources are available by real estate websites and are commonly referred to as AVM’s, or automated valuation models. However, the AVM’s maybe the least accurate as compared to the next 2 valuation methods. Because it’s so widely and generally used, the AVM’s reflect down on the valuation accuracy.
2. Comparative market analysis
Once you have made up your mind and you are ready to sell your home, you can consult a local Realtor®. A Realtor® can do a comparative market analysis for your home to give you are better home valuation than the online home valuation tools. Realtors® use the sold comparatives from your immediate neighborhood/community to provide you the best valuation results. The comparatives used in these reports are commonly referred to as ‘comps’. A ‘sold comp’ will provide a better valuation as compared to an ‘active/pending comp’. Realtors® have access to the local multiple listing sites (MLS), which provide them with more detailed characteristics of a property. Just like we can’t compare apples to oranges, we can’t just use any ‘sold comp’ and compare it to your property. Property characteristics have to match as well. For example, if your property has 3 bedrooms then the comps used have to reflect 3 bedrooms as well or be adjusted accordingly to reflect an accurate valuation. The gross living area and lot size also need to match or be at least in a 2% range to provide a better valuation. When doing comparative market analysis, the property characteristics and improvements are adjusted to provide an accurate valuation of your property. The comps used in the CMA’s have to be within one mile of the subject property in a suburban location or up to 5 miles in a rural location. All these data are then put together to generate a report which is unique to your property. The CMA reports are complimentary to you, provided by realtors® in hopes of getting your listings.
3. Professional appraisal reports
An appraiser is an individual who is licensed to determine your home value. In California, appraisers are licensed by the California Bureau of Real Estate Appraisers. They are licensed professionals who can determine the most accurate value of your property. Appraisers charge a fee for appraising your property and that fee can range anywhere from $300 to $750, depending on the size and type of property. Appraisal reports are lengthy and much more detailed than the CMA’s. Most appraisers work with mortgage lenders and provide reports for home purchases or refinances. As a home seller, if your home is unique and its characteristic is such that it’s impossible to make regular characteristic adjustments, then you can certainly hire an appraiser and get an appraisal report done to determine your property valuation. Unlike, the online property valuation tools and the CMA’s, you will have to pay for the appraisal reports.
Recently, home prices have been skyrocketing due to a lack of inventory in Lake Elsinore and all nearby cities and counties. Even new construction homes have waiting periods of up to 6 months or more! The sale of these new construction homes is certainly helping raise the property prices in Lake Elsinore and all nearby cities and counties. Are you a homeowner and are thinking to sell your home for the top dollars? We at Legacy Homes Realty will gladly do a complimentary home valuation/CMA for your property. Contact us today at 951-314-4251 or email us at [email protected] to get your complimentary home valuation report ready for you on the same day! Legacy Homes Realty is located in Lake Elsinore and we provide real estate sales and purchase services. We are specialized to do home valuations and have been in business for more than 15 years.
If you’re thinking of selling your home and are not sure when is the right time to sell your home then feel free to check out our other blog posts “WHEN IS THE BEST TIME TO SELL HOME IN LAKE ELSINORE, CA, IN 2021?” If you want to know how much your Lake Elsinore home is worth then Click Here or fill out your address below and click find my value.