How to Appraise a House for Sale
Are you looking to appraise a home?
With the U.S. real estate appraisal market slowly bouncing back, home buyers and sellers will hire professional appraisers. Hiring one can cost a seller around $300 to $500.
Thankfully, you can get an initial appraisal without hiring a pro. Continue reading below to learn how to appraise a house for sale.
How to Appraise a House for Sale
Start with Online Valuation Tools
The simplest way to find a house value is through an online home value estimator or automated valuation model (AVM). This tool combines tax assessments, deeds of ownership, property transfers, and mathematical modelling to predict a property’s value.
For example, an AVM may ask for the location of your home to estimate its overall value. The tool will also provide a valuation per square foot. It derives the value using sales history, value history, and property details.
Most of these online tools are user-friendly and give quick estimates, saving time. The caveat is that the values do not consider the property’s repairs and renovations.
Evaluate Similar Properties
If you have lots of time to spare, you may conduct a DIY house appraisal. Though home prices will keep rising, you cannot afford to overvalue the property. Objectivity is essential when doing an unofficial assessment.
Check every corner of your house for defects buyers will notice. Then, determine how much these issues can affect the property’s valuation.
Create a spreadsheet showing the home’s dimensions, such as the square footage, lot size, and number of bedrooms and bathrooms. Indicate additions like a gazebo, a swimming pool, or a fireplace.
Using these details, compare the property to similar homes. Look for similar properties sold in the last three to six months. Compare the prices per square foot to get a rough estimate of your house’s value.
For example, if your home is 1,500 square feet and the average price per square foot of similar homes is $200, then the estimated value of your property is $300,000.
Find a Local Agent
You can also learn how to appraise a house with the help of a local real estate agent. A trusted agent can give a comparative market analysis (CMA). It is a valuation method with a wide range of property values.
It provides a deeper understanding of home valuation and the factors affecting the prices in your area. The agent will use the prices of similar properties sold in your area.
A CMA valuation is not from a licensed real estate appraiser. This means that the value will not automatically comply with appraisal standards. You cannot use the valuation for income tax purposes, financial reporting, or civil proceedings.
Despite this, real estate agents offer CMAs with a minimal fee. If you’re lucky, you may even get one for free.
Learn How to Appraise a House Now
Now you know how to get a home appraisal, you can buy or sell a property at the right price. You can also save more money to close the deal.
Go beyond learning how to appraise a house. Check out our other articles for more helpful tips and topics.
