There are many reasons for you to you determine the value of your property, such as to get an accurate figure for tax or insurance payments, establish a loan against the property, or even sell it. If you're comfortable appraising your property's value yourself, you can determine its market value without requiring the expense of a professional appraiser.
1. Which type of appraisal are you looking for?
The value of your property can be expressed in terms of "market value" and "assessed value." The market value is the most likely price your property would bring in a generally competitive real estate market. The assessed value of your property is the value computed for use in property taxes. The metric for each of these changes over time, so it's important you know which type of assessment you're doing - or if you're doing both, what to do if the two appraisals vary.
2. Compare to sales of similar properties
A quick and easy way to determine what your property might sell for (the market value) is to compare it to other homes near you that have sold in the last six months. You'll want to match as many details as closely as possible, including approximate location, square footage, style, lot size, amenities and age. Most appraisers will add to or subtract from the final sale price depending on how closely the features match, then take an average. This is a best-guess approximation of what your home could sell for, and is relatively easy to obtain if you have access to a database of area home sales. Our real estate professionals can help you with this.
3. Determine the value of recent improvements
If your home hasn't been assessed for several years, recent improvements or upgrades may not have not been factored into the value. Changes in the size or quantity of rooms, new roofs or heating systems, appliances or other improvements can all have an effect on how much your home is worth. Outside buildings such as a garage or infrastructure improvements such as new water/sewage systems can also add substantial value to your property.
4. Does your home's location affect the value?
It's a somewhat rhetorical question, as location always affects a home's value, but some locations carry greater influence than others. A home located within a highly desirable school district will sell for more, as will a property within an up-and-coming neighborhood. There may be other factors of which you may not be aware that affect the property value of your home. Your best resource for keeping abreast of such elements is to contact a real estate professional with knowledge of your area.
5. How much would it cost today to build an identical structure on your property?
This is a somewhat different approach to assessing the value of your home and property, but it can also be more accurate. Generally speaking, your land appreciates in value while the structure on it depreciates over time. One would hope that the existing structure adds to the overall value rather than takes away from it (although it certainly is possible for the opposite to happen). If you can determine the value of the land separate from your home and then calculate the building cost for a similar structure, this can be used to determine the market value in situations where similar home sales are not an option.
No matter what method you use, the real estate professionals at Coldwell Banker Rizzo Mattson Realtors can help you determine the value of your property with expert advice and knowledge of your neighborhood. Contact us today.