Are you wondering if you should take advantage of the climb in values and sell your home or maybe take out a loan on you increase in equity? The first place to start is with the question “what is the fair market value of my home?”. What part of Macomb County are you located? Warren, Roseville, St Clair Shores, Harrison Twp, Eastpointe, Mt Clemens, Clinton Twp to name a few?
What is fair market value vs appraised value
When getting a fair market value estimate, you should consider two main types of valuation:
Fair Market Value (FMV)
Fair market value (FMV) is the price that an asset would sell for on the open market. An assets FMV should represent an accurate valuation or assessment of it’s worth. Fair market value encompasses what your home looks like to prospective buyers looking at other homes in the area. Consider the sale price of a home that’s similar to yours (same number of bedrooms and bathrooms, square footage or outdoor space, say). If you work with a real estate agent to help you sell your home, this is where your agent will start: by to gauge what buyers are willing to pay for a property comparable to yours.A real estate investor can also show you comparable homes in the area.
While the appraised value of your home factors in comps, it differs from fair market value. To calculate appraised value, a licensed appraiser considers the location, size and condition of your home, and any renovations you’ve completed. The appraised value is what mortgage lenders look at when a borrower buys a home or refinances their mortgage. Appraised value is an opinion and can change from one appraiser to the next.
5 ways to find out what your house is worth
1. Enter your address into a home value estimator
Best for: Sellers, buyers or anyone curious about the ballpark value of a home.
There are loads of online tools that offer a quick home value estimate. These online tools — sometimes called automated valuation models, or AVMs — use algorithms and publicly available data, such as recent sales, tax assessments and other public records, to generate an estimate. There are many home value estimators out there, each using a different methodology, so your estimate can vary. Common home value estimators include:
- Remax home value estimator
These can all be helpful in getting a ballpark of your home’s value, but it is only an estimate and in certain circumstances could be as much as 30 percent off. These estimators are based on algorithms and they don’t see the actual condition of your home or any upgrades you have completed,Technology can do a lot, but your home is one of your biggest assets, which means it’s worth talking to a professional about it, too.
2. Consult with a real estate agent for a market analysis
Best for: Those who are selling or considering selling a home and listing it on the MLS. (Multiple Listing Service).
Real estate agents typically offer a comparative market analysis (CMA) for free in hopes of winning your business if you do decide to sell your house. To complete the CMA, the agent pulls data about recent sales of comps in the area. They then draw on their knowledge of the neighborhood and any special characteristics of your property to estimate its value. A buyer’s agent may also provide this same service for any home you may want to make an offer on.
A real estate agent should have the knowledge and experience to ascertain an accurate market value. They should know the neighborhood and market conditions for that area. They will also need to look at your home to assess conditions and any updates done or repairs needed.
3. Check your county or municipal auditor’s website
Best for: Those who want to understand their home’s value from a tax perspective.
County auditors periodically assess the value of residential properties for property tax purposes, and this information is searchable online. You can look up the assessed value of your house to see if it has appreciated or compare the figures with other homes for sale. The rule of thumb with assessed value is to double it but in many cases a house will sell for more than double the assessed value. The taxable may or may not be the same as the assed value and this is what your property taxes are based on. Typically, you can go to your city assessor’s website or this information should also get mailed to you.
4. Hire a professional appraiser
Best for: Those who want the most professional home value estimate, and may want to use the data as they consult with a mortgage lender.
Mortgage lenders hire appraisers to confirm the value of a house before approving a loan. Some home sellers choose to take the extra step of hiring an appraiser, but it’s not required. The appraiser considers the characteristics of the property, such as how many bedrooms and bathrooms it has, as well as comps, similar to a CMA prepared by a real estate agent.
5. Consult with a real estate investor
Best for: Those who want a no nonsense hassle free transaction.
Remember that no single home valuation method is guaranteed to be 100-percent accurate. Using a combination of resources is the best way to get the most accurate value for your home.
For example, you might contact a realtor to get a free CMA and conduct your own research using an online home value estimator, as well as obtaining information from an assessors website for Warren, Roseville, St Clair Shores, Harrison Twp, Eastpointe or Mt Clemens. You may also contact a real estate investor who will provide a free no obligation value for your home. Additionally, you could pay for a professional appraisal. Averaging together all the final values you gather could give you a more accurate picture of your home’s value.
Ultimately, however, the most reliable home value estimates come from those who take the time to carefully assess your property based on a variety of factors.
All of the evaluation tools are useful in giving an idea of the worth of your home, but an appraiser and/or an experienced agent or a real estate investor will be the most accurate sources for determining value. They will have an advantage, as a computer cannot determine intrinsic value or consider the condition and improvements you’ve made to your home.
Select Home Solution can provide a free no obligation consultation regarding the fair value of your home. They are not only experienced as real estate investor’s but Yvonne is also a licensed real estate agent. They can provide several different avenues and options if you are looking to sell your home. To name a few, we can assist with listing your home on the MLS. We can provide a cash offer for your home with a quick closing. We also may be able to take over your mortgage or give you the opportunity to become a lender to us with seller financing of your home. Call us today to make an appointment to discuss your options.