The real estate market in California was on an ear-popping ride before cooling recently amid rising mortgage rates – so do you know how much your home is worth right now?
If you are scratching your heading trying to think of an answer, you aren’t alone – many owners aren’t sure.
However, this information is essential to know if you plan to move or refinance soon.
A home’s value is what a potential buyer would pay for your house, according to Rocket Mortgage. Knowing this information allows you to determine a fair and competitive selling price so you don’t undersell or leave your property languishing on real estate listings.
So, the main question is, how is this done?
Home value factors
According to Opendoor, location, size, condition, age, the surrounding school district and current market conditions are some factors can determine your home’s value.
How to calculate a home’s value?
Online tools or a professional can help you determine how much your home is worth.
Companies like Zillow and Redfin offer online tools to help homeowners figure out how much their homes are worth.
People can also look up real estate comps, a list of what similar homes in a specific area sold for, to help narrow the range when it comes to pricing.
Zillow, Redfin and Trulia have “Find A Home” features that allow you to see prices other homes sold for, but experts warn that the information could be outdated.
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County records can also provide this information.
Hiring a professional appraiser or consulting with a realtor could also help determine your home’s value for those who don’t want to go the tech route.
However, speaking with a home appraiser could be a costly expense. Homelight, another real estate company, found that the minimum amount needed to consult with a credible home appraiser can range from $450-$550.
The Next Steps
Once you determine your home’s value, experts recommend keeping track of it by reassessing it yearly.