What's Your Property Worth?
Home valuations give you valuable knowledge that can help you plan for the future and make smart decisions. It’s good practice to stay informed about how much equity you have in your home and how much you may be able to borrow against it or sell it for.
Our tool provides a more robust, accurate assessment than you’ll get from the major real estate portals. For the most precise valuation, reach out to discuss a customized Comparative Market Analysis or an appraisal.
What is a Home Valuation?
A home valuation determines the current market value of a residential property. It is crucial for real estate transactions, preventing excessive borrowing and financial losses. When getting a mortgage, the home acts as collateral. If the borrower defaults, the lender may sell the property to recover funds. A thorough home valuation safeguards the lender's ability to recover costs if the mortgage is not fully repaid.
How is the Valuation of My Home Calculated?
The value of your home is calculated using a combination of factors including its location, age, size, condition, any improvements or renovations made, and recent sale prices of comparable homes in the neighborhood. It also factors in current market trends and local market conditions. The valuation tool is dynamic and can be influenced by data such as inventory trends, interest rates, and current buyer sentiment.
How Accurate is the Online Home Valuation?
Online home valuations provide a good starting point and offer a general estimate of your property’s worth. However, they may not factor in recent renovations, unique features, historical value, architectural significance, and subjective market perception that could impact your home’s actual market value. For the most accurate assessment, consider scheduling an in-person appraisal.
How Is A Valuation Performed?
Your Accurate Guide to Property Home Valuation
Comparative Market Analysis
A Comparative Market Analysis (CMA) is used by real estate agents to determine a property's likely market value based on recent sales in the same area. It considers comparable properties, including their size, condition, location and selling price. This helps determine how the property compares with others currently available or recently sold in the market.
Based On A Professional's Opinion
An experienced professional can provide an informed opinion based on their knowledge of the local market, current property conditions and comparable sales. Professional expertise helps ensure that relevant factors are considered when determining a property's estimated market value.
Why Is A Valuation Important?
Situations When a Home Valuation May Be Necessary
Lenders base the amount of their loans on the value of your property and usually allow you to borrow a maximum of 75% to 96.5% against your property. Knowing what your home is worth allows lenders to calculate your equity in the home. The more equity you have, the better terms you will receive on your refinance.
If you're doing home improvement projects to increase the resale value, you want to know exactly what you're improving and how much value those improvements could potentially add to the property.
If you want to borrow against your home, getting a home equity line of credit could be part of your financial plan. A property valuation can help lenders determine the amount of equity available in your home and help you understand how much financing may be possible.
Though it is an investment, simply knowing the value of your home can provide useful information for your financial planning. It can help you understand your overall financial position and make informed decisions when considering selling, refinancing, investing or planning for the future.