Once you’ve purchased a home, staying informed about its value is crucial for making smart financial decisions. Whether you’re considering refinancing, selling, or borrowing against your home’s equity, knowing how the market values your property can guide these choices. Below, we explore four reliable methods for assessing your home’s worth and offer tips to unlock even more value.
1. Online Valuation Tools A convenient way to get an estimate of your home’s value is through online valuation tools. Ally Home, in partnership with House Canary, offers ComeHome, a platform that provides insights into your estimated home value and market projections for the coming year. You can also explore active listings and compare your home to others in the neighborhood, giving you a broader understanding of its market position.
2. Comparative Market Analysis (CMA) For a more personalized approach, a Comparative Market Analysis (CMA) is often performed by real estate agents. This method compares your home to at least three recently sold properties with similar characteristics—such as square footage, the number of bedrooms and bathrooms, and amenities like large backyards. A CMA provides a detailed report that factors in these variables, giving you a more specific estimate based on your local real estate market.
3. Automated Valuation Models (AVMs) Automated Valuation Models (AVMs) are software-based tools that analyze current market data, including sales trends, to provide an estimated value. Many professionals in the real estate and financial sectors use AVMs as a quick reference. Keep in mind, though, that while AVMs provide a useful snapshot, the values generated are approximate and not a guaranteed assessment.
4. Professional Appraisals If you’re looking for the most accurate valuation, hiring a professional appraiser is the way to go. Appraisers assess the current condition of your home and incorporate any updates or renovations into their report. Though typically required by lenders, appraisals can be requested at any point to gain a thorough understanding of your home’s value.
Factors That Influence Your Home’s Value Several key factors influence how much your home is worth. These include the location and neighborhood, the size and condition of your property, market trends, and recent sales in the area. Additionally, upgrades like renovations, energy-efficient improvements, and aesthetic updates can significantly impact its value. Features like proximity to schools, restaurants, and local amenities also play a role.
Tips to Boost Your Home’s Value Though you can’t change your home’s location, there are numerous ways to enhance its value. Focus on increasing curb appeal through landscaping, making aesthetic improvements inside, and updating major systems like the roof or basement. Energy-efficient upgrades, such as installing modern appliances, can also appeal to buyers and increase market value. Tools like ComeHome offer home improvement calculators to help you estimate how much value your upgrades might add based on your location.
With the housing market constantly shifting, your home’s value may surprise you. Keeping an eye on its worth not only helps you make informed decisions but can also reveal opportunities to maximize its potential. Whether you’re planning for the long term or considering your next steps in homeownership, regularly assessing your home’s value is an essential part of managing this significant investment.