Introduction

Your home is likely your most significant asset, and understanding its value is crucial whether you’re planning to sell, refinance, or simply want to know your net worth. Home values are constantly changing, and according to the Federal Housing Finance Agency, home prices in the U.S. increased an average of 9.82% year over year from Q1 2019 to Q1 2024. In this article, we’ll explore various methods to determine your home’s value and provide tips on how to increase it.

How to Find Out How Much Your House Is Worth

There are several ways to estimate your home’s value, each serving a different purpose. Here are three common approaches:

Option 1: Get an Online Valuation

Online valuation tools, such as those offered by Zillow, Redfin, and Realtor, use public data and algorithms to estimate your home’s value. These tools are fast, convenient, and free, making them an excellent choice for a quick ballpark figure. However, they may be less accurate if your home isn’t currently on the market or has been off the market for years.

Option 2: Work With a Real Estate Agent

A real estate agent can prepare a comparative market analysis (CMA) using recent sales data for comparable homes in your area. This personalized estimate considers factors that online tools might miss, such as local market conditions and buyer preferences. If you’re serious about selling, a CMA is invaluable.

Option 3: Hire an Appraiser

A licensed or certified real estate appraiser provides an unbiased valuation of your property, considering market trends, the physical condition of your home, and other factors. Lenders require appraisals for loan qualifications, but you can hire an appraiser anytime you need an objective evaluation.

How Is Property Value Assessed?

Property values are assessed using a combination of basic property information, market factors, and specific methodologies. Here’s a closer look:

Property Basics

Valuations start with basic information about your home, including square footage, number of bedrooms and bathrooms, lot size, age and condition, and special features like a swimming pool or sunroom.

Market Factors

Your home’s value is influenced by national and local home sales markets, mortgage interest rates, the availability of homes in your area, and even your home’s insurability. Valuators consider your property’s basic information, sales history, and comparable property sales in your area.

Methodology

Online valuators use proprietary algorithms for instant projections, while real estate agents and appraisers combine data analysis with firsthand knowledge and experience to create individualized valuations.

How to Increase the Value of Your Home

While you can’t change market conditions or your home’s location, you can increase its value through strategic repairs and upgrades. Here are some ideas:

Update Your Home’s Finishes

Inexpensive upgrades to light fixtures, paint, cabinet hardware, and other finishes can give your home a modern vibe without breaking the bank.

Step Up Your Curb Appeal

Exterior improvements like a new roof, windows, siding, front doors, decks, or even a fresh coat of paint can make your home look well-maintained and up-to-date.

Make Energy-Efficient Improvements

Installing solar panels or a heat pump can save on energy costs and appeal to eco-conscious buyers. Consider drought-resistant landscaping or shade trees to improve curb appeal and reduce cooling costs.

Upgrade Your Kitchen or Bath

Kitchen and bath renovations can be costly but significantly increase your home’s value. Stick to design choices that appeal to modern buyers to maximize your return on investment.

Add Square Footage

Adding an addition or accessory dwelling unit (ADU) expands your home’s square footage and value. If major projects aren’t in your budget, look for ways to add usable space within your existing home, like creating a small office area or finishing a basement.

Clean and Declutter

A clean, uncluttered interior makes a great first impression on buyers. Consider staging your home to help buyers visualize living there.

The Bottom Line

Knowing your home’s value is essential for selling, refinancing, checking your property tax bill, calculating your net worth, or considering upgrades. Use online tools, real estate comps, or formal appraisals to get a range of estimates.

If you’re planning a home purchase or improvements requiring a home equity line of credit (HELOC), now is a great time to check your credit report and score. Good credit is key to securing favorable interest rates and keeping your mortgage payments affordable.

For expert mortgage services, contact O1ne Mortgage at 213-732-3074. Our team is here to help you navigate the complexities of home financing and ensure you get the best value for your money.