Comparative market analysis
Discover your home's value instantly with our free monthly home value report. It uses big data, but we can personalize the report based on your home's unique features. Thinking about selling? Contact Peter for a more detailed Comparative Market Analysis of your home.
Home valuations are key to making informed decisions. Whether you're planning to borrow against your home, sell it, or simply stay updated on your investment, knowing your home's value is essential.
Our Homebot AVM technology offers a more comprehensive and accurate assessment than what you'll find on major real estate portals. Think it’s off? Let us know and we’ll adjust it so that it tracks market value moving forward. For the most precise valuation, consider reaching out to us for a customized Comparative Market Analysis (CMA)—free to any homeowner, or an appraisal from a licensed professional. Stay informed, stay prepared, and make the smartest decisions for your financial future.
A home valuation estimates the current market value of your property. It’s a critical step to establish a baseline in any real estate transaction. When you apply for a mortgage, your home serves as collateral. A thorough valuation ensures that the lender can recover their costs if the mortgage isn’t fully repaid, protecting both the borrower and the lender.
Your home’s value is calculated using several factors, including its location, age, size, condition, and any improvements or renovations you’ve made. It also considers the recent sale prices of comparable homes in your area, current market trends, and local conditions. Our valuation tool is dynamic, incorporating data like inventory trends, interest rates, and buyer sentiment to provide an up-to-date estimate.
Online home valuations are a helpful starting point, offering a general estimate of your property’s worth. However, they may not fully account for recent renovations, unique features, historical value, architectural significance, or the subjective market perception that can influence your home’s true market value. For the most accurate assessment, consider scheduling an in-person appointment for a detailed value opinion.
Two Accurate Ways to Perform Home Valuations
A Comparative Market Analysis (CMA) is a tool used by real estate agents to estimate the value of a home by evaluating similar properties that have recently sold in the same area. The process involves identifying comparable sales—usually three homes that have sold recently and are as similar as possible to the property being valued in terms of size, location, and features.
Once these comparable homes are identified, the agent conducts a detailed sales comparison. This involves analyzing the differences between each comparable property and the home in question, such as differences in square footage, number of bedrooms and bathrooms, lot size, condition, and any upgrades or renovations. The agent then adjusts the sales prices of the comparable homes to reflect what they would likely sell for if they were identical to the subject home in the current market.
The result is a well-informed estimate of your home's value, based on recent sales data and market conditions, which helps you make confident decisions whether you’re buying, selling, or refinancing.
An appraisal is an unbiased valuation of a home, conducted by a professional licensed appraiser to determine its market value for mortgage purposes. Appraisals are typically required by lenders for home purchases and refinances to ensure that the lender is not lending more money than the property is worth. The lender usually orders the appraisal, and the cost is typically paid by the homeowner.
The appraisal process involves a thorough visual inspection of both the interior and exterior of the home. The appraiser considers recent sales of similar properties, current market trends, and specific details about the home, such as its condition, size, and features. After completing the inspection, the appraiser compiles a detailed report that includes an exterior building sketch, a street map showing the home and nearby comparable sales, photos of the home and its surroundings, an explanation of how the square footage was calculated, and any other relevant information.
This report provides a comprehensive, professional assessment of the home’s value, which is crucial for both buyers and lenders in the real estate transaction process.
Situations when a home valuation may be necessary
When refinancing, lenders determine the amount of the loan based on the current value of your property. Typically, they allow you to borrow between 75% to 96.5% of your home's value. Understanding your home's worth is crucial, as it enables lenders to calculate the equity you have in the property. The more equity you possess, the better the terms you are likely to receive on your refinance, potentially leading to lower interest rates and more favorable loan conditions.
If you’re planning home improvement projects to boost your home's resale value, it’s important to ensure you’re not pricing your property out of the market. If your home is already at the high end of pricing for your neighborhood, making too many upgrades could make it harder to sell. By getting a valuation, you can see how your home compares with others in the area and use this information to guide your home improvement decisions.
If you’re looking to borrow cash against your home, a Home Equity Line of Credit (HELOC) could be a great option. To qualify, you generally need to have a level of equity in your home of at least 20%. Obtaining a home valuation will help you determine if you qualify and will also be used by the lender to make a decision on your loan.
Though it’s not a necessity, simply knowing the value of your home is good information to have. It will help you plan for the future and deal with unforeseen circumstances when you might be in a position that requires extra money or a quick relocation. Knowing how much equity you have in your home and how much you may be able to borrow against it or sell it for will help you respond to any financial curveballs that life throws at you.
Two Accurate Ways to Perform Home Valuations
Comparative market analysis
A Comparative Market Analysis (CMA) is a tool used by real estate agents to value a home. It evaluates similar homes that have recently sold in the same area. Agents find comparable sales and use them to conduct a sales comparison. In most cases, an agent will find three homes that have recently sold and are as similar to and located as close to the home being valued as possible. Each one is then analyzed to pinpoint differences between it and the home being valued. Once these differences are priced out, the price of each comp is adjusted to see what it would cost if it was identical to the home being valued were it to be sold in the current market.
APPRAISALS
An appraisal is an unbiased valuation of a home based on a professional’s opinion. They are usually what mortgage companies use for home purchases and refinances. A lender usually orders a home appraisal and the cost of the appraisal, sometimes up to $500, is paid by the homeowner. An appraiser does a complete visual inspection of the interior and exterior of the home as well as taking into consideration recent sales of similar properties and market trends. The appraiser then compiles a detailed report on the home, including an exterior building sketch, a street map showing the home and any comparable sales, photos of the home and street, an explanation of how the square footage was calculated, and any other relevant information.
Situations when a home valuation may be necessary
REFINANCING
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.
HOME IMPROVEMENTS
If you’re doing home improvement projects to increase the resale value, you want to make sure you’re not pricing it out of the market. If your home is already priced on the high-end for your neighborhood, making too many improvements could make it more difficult to sell. When you get a valuation, you can see how your home compares with others in the neighborhood and let this guide your home improvement decisions.
QUALIFYING FOR CREDIT
If you want to borrow cash against your home, getting a Home Equity Line of Credit (HELOC) could be a good option. To qualify, you must have a certain level of equity in your home. Most lenders require at least 20%. Getting a home valuation will help you determine if you qualify and will be used by the lender to make a decision on your loan.
PLANNING
Though it’s not a necessity, simply knowing the value of your home is good information to have. It will help you plan for the future and deal with unforeseen circumstances when you might be in a position that requires extra money or a quick relocation. Knowing how much equity you have in your home and how much you may be able to borrow against it or sell it for will help you respond to any financial curveballs that life throws at you.