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- Related Resources
- What Is Fair Market Value (FMV) In Real Estate And How Is It Determined?
- Should I Remodel Or Move?
- How often should I check my homes value?
- My homes value went down. What should I do?
- Tracking Your Homes Value
- Benefits of Knowing Your Home’s Value
- About Chase
- Before You Use One of the Best Home Value Estimator Sites
- How to Find the Value of a Home
- 1. Online tools to calculate the value of my home?
- 2. Get a comparative market analysis
- 3. Use a house price index calculator
- 4. Hire a professional appraiser
- 5. Evaluate comparable properties
- Our Verdict
- How does Opendoor calculate the value of my home?
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What Is Fair Market Value (FMV) In Real Estate And How Is It Determined? Mortgage Basics – 4-minute read Lauren Bowling – May 23, 2022 Fair market value (FMV) in real estate is an assessment of a property’s worth in an open market. Learn how FMV is determined and what it’s used for. Read More
Should I Remodel Or Move? Home Buying – 8-minute read Miranda Crace – July 22, 2022 Wondering if you should buy a new home instead of remodeling? Explore statistics on costs and learn the pros and cons. Read More
How often should I check my homes value?
While you don’t need to revisit your home’s value too often, checking on it periodically, such as once a year, is a smart move for several reasons. Knowing the current value of your home allows you to determine, for example, whether your homeowners insurance policy still adequately covers the property.
“The value of your home also affects your taxes,” Reed says. “You might be able to lower your assessment.”
It can also be helpful to know the value of your home so you know how much equity you’ve accumulated, which could allow you to qualify for a home equity loan or line of credit, or cash-out refinance.
Of course, knowing the value of your home is very important if you’re considering selling. You’ll know where you stand with buyers, and what you could potentially take home after the costs of the transaction and taxes.
My homes value went down. What should I do?
While home values across the board have increased, there could be factors beyond the homeowner’s control that can cause prices to decline.
“Local political issues, climate changes, transportation and employment opportunities — or lack of these last two things — can influence home values,” says Gerard Splendore, an associate broker with Warburg Realty in New York City. “Selling may not be a good idea, unless it is apparent that values will continue to decrease.”
If you can wait out a downturn rather than making a rash decision, that may often be best.
“Home property values are typically influenced by the current economic climate, as well as the supply of houses on the market, which will change over time,” Duffy says. “If you can prolong moving, housing prices will eventually start to rebound.”
Tracking Your Homes Value
We’ve watched home values go up most of our lifetimes. Rising home prices have a significant effect on our wealth, and ability to borrow. Even if you don’t plan to sell your home, watching your home’s value increase over time can be a lot of fun.
Many people have used their home equity smartly to consolidate personal debt or to invest in building a business from their home. While it’s important to always understand your asset values, try not to get attached to the ups and downs too much.
Remember, these websites and others let you watch your home’s value grow aren’t exact, and the only time you’ll get a true answer to the question “how much is my home worth?” will be when you go to sell or borrow against the home.
If you want “the real thing” – as in, a price that reflects every factor that goes into a home’s sales price – you should meet with at least 2 or 3 realtors or mortgage lenders to get price suggestions.
Chances are, a realtor will be able to offer more insight into your local market than any online real estate tool ever could.
Benefits of Knowing Your Home’s Value
Knowing the value of a home can help homeowners plan their finances more accurately.
If you bought a home for $200,000 and its true market value is now $350,000, your equity has likely increased. You can then use this equity to secure a home equity loan, which can be used to buy a second home, fund a renovation project or consolidate debt. Use the Discover Home Loans Loan Amount Calculator to see how much you can borrow with a home equity loan.
You can also use the new value of your home to calculate your cash-out refinancing options. With cash-out refinancing, you can rewrite your mortgage loan for a larger amount and take that amount in cash. Use the Discover Home Loans Cash-Out Refinance Calculator to input the current market value of your own and learn more about your options.
Chase Bank serves nearly half of U.S. households with a broad range of products. To learn more, visit the Banking Education Center. For questions or concerns, please contact Chase customer service or let us know at Chase complaints and feedback.
Before You Use One of the Best Home Value Estimator Sites
Keep in mind that these home value estimator sites aren’t 100 percent accurate—they merely serve as a jumping-off point before taking a home to market or considering a loan. Many variables go into estimating a home’s value, and ultimately, real estate values can shift daily. With that being said, a user may want to get estimates from several of the top sites. If a homeowner has recently renovated or remodeled their home, the estimate may not reflect these updates. Therefore, a homeowner will have to use additional tools such as a home improvement calculator to help determine the return on investment (ROI) of their renovations. Keep in mind that not all upgrades will improve the home’s value, and those that do are unlikely to yield a 100 percent return on investment. Another thing to remember is that estimates from home value estimator sites most likely won’t be used to help list a home or refinance it. A more accurate assessment is needed, such as a real estate agent’s comprehensive analysis or an appraisal.
How to Find the Value of a Home
There are many resources homeowners can use to find out property values.
1. Online tools to calculate the value of my home?
Homeowners can use a home value estimator tool to learn the value of their house. The digital tools use your address, data from comparable homes in your area, and specific questions about your home, such as features and renovations, to estimate your home’s worth.
2. Get a comparative market analysis
Real estate agents can provide you with a comparative market analysis. This is their estimation of your home’s value based on an evaluation of your property and market trends. This is commonly done before listing a home for sale.
3. Use a house price index calculator
The house price index (HPI) calculator uses data from mortgage transactions over time to estimate the value of a given house. This value is projected based on the purchase price of the home and the changing value of other homes in the area.
The house price index calculator is useful for seeing how much a house has appreciated over time and estimated future changes in mortgage rates.
4. Hire a professional appraiser
You can hire a professional appraiser to assess the appraised value of a house. This appraised value can be used to list the house at an accurate price, refinance, or determine the financial effects of a remodel.
5. Evaluate comparable properties
If you don’t want to pay an appraiser yet, you can research comparable properties in your area to estimate the fair market value of a home. Browse sites with MLS listings to find the prices for homes like yours. Consider square footage, age, condition, outdoor space, amenities, and the number of bedrooms and bathrooms during your research.
We chose Zillow as a top option because it has a database full of listings that yields estimates with a 1.9-percent on-market and a 6.9-percent off-market median error rate. Redfin is a solid runner-up choice, with a 2.24-percent median error rate for on-market homes and a 6.74-percent rate for off-market homes and an easy way to get a free comprehensive analysis.
How does Opendoor calculate the value of my home?
Opendoor has built a valuation algorithm that can compare hundreds of pairs of comps for any given address. We’re able to make dollar value adjustments for the finer details of your home like it’s location within a neighborhood, improvements you’ve made like granite countertops or a finished basement, and even more abstract factors like road noise. We pair our data analysis with insights from local pricing experts.
To make an offer on your home, we rely on three things: