Rental4Income

  • Home
  • Investor Profile
    • Pre-Approval Form
  • Articles
    • Cash Flow
    • Finance
    • Investment Tips
    • Real Estate Investing
      • Tampa, FL
    • Real Estate Mentor
    • Rental Property
    • Tampa Real Estate News
    • Turnkey Investment Properties
    • Wholesale Real Estate
  • Videos
  • Glossary
  • Properties
  • Testimonials
  • About
    • Investing in Rental Property
  • Contact

September 6, 2022 By Admin

How Much is My Home Worth?

Home worth

Like most everything, home values are generally subject to the law of supply and demand. However, determining a home’s worth can be difficult due to the current economic conditions, location, comparable area sales, interest rates, and other factors. Knowing a home’s current value means greater control for the homeowner.

Why Understanding Home Values is Important

The benefits of knowing a home’s value go beyond purchasing or selling. Knowing a home’s value is also important when refinancing a mortgage or obtaining a home equity line of credit. In addition, insurance premiums and property taxes are all based on a home’s value.

Tools for Determining the Value of a Home

Several online valuation tools are available to help homeowners and buyers assess a property’s current value.

Realtors and lenders both sponsor these estimator tools. Be aware that a Realtor-driven estimator may tend to provide estimates on the high side to encourage a potential seller to contact the Realtor. Conversely, other estimator tools may provide lower estimates to inspire a potential homebuyer to look for a lender.

Here are some tools for determining a home’s current value.

  • Automated Valuation Model (AVM) provides a value estimate for a property by just entering an address. The calculations are based on recent local sales and actual listings of surrounding properties.
  • Realtor Comparable Market Analysis considers recent comparable sales (known as “comps”). A good indicator of a home’s suggested selling price is to compare the closing prices of two homes of similar size and condition in the same neighborhood.
  • Home Price Index Calculator by the Federal Housing Finance Agency tracks price changes from millions of homes sold in the United States for the past fifty years. The tool is valuable for both owners and buyers.
  • Professional Appraisers can provide an accurate assessment of a home’s value by using several variables (including comp sales, local market conditions, current listings, additions, improvements, and more). A lender’s appraisal is common practice for mortgage-supported transactions.

Buyers’ Market vs. Sellers’ Market

There can be situations in which a home’s value will vary significantly from the estimated value. One instance is when sellers are forced to compete with other sellers to attract buyers.

When the supply of homes for sale exceeds buyer demand, the buyer has greater leverage over the seller (“buyers’ market”). Homes often stay on the market longer, and real estate prices decrease in a buyers’ market.

In a “seller’s market,” the demand for homes exceeds the supply. Sellers have the advantage, and buyers must compete for fewer properties available for sale. A shortage of homes often leads to a bidding war where buyers make competing offers and drive up the price of a home beyond the seller’s initial asking price.

 

© 2022 xpertRealtyMarketing. Sign up to have real estate articles delivered to your website.

Tweet
PinIt

Filed Under: Real Estate Mentor

headshot of Jorge VazquezLearn More About Real Estate Investing

The Graystone Newsletter will keep you informed with important information relating to real estate investing. The newsletter includes information we share with our clients about the best places to invest in real estate, the latest trends, and the information you need to know to succeed investing in real estate.

Real estate investors, wholesalers, flippers, real estate agents, and everyone connected to the real estate industry will benefit from the wealth of information we share very month.

For more information about how we process your data, please click here to read our Privacy Policy.

Disclaimer:
RENTAL4INCOME.COM IS A WEBSITE OF GRAYSTONE INVESTMENT GROUP LLC. YOU ARE HEREBY NOTIFIED THAT NEITHER GRAYSTONE INVESTMENT GROUP LLC, NOR ANY OF ITS EMPLOYEES OR SUBSIDIARIES, REPRESENT YOU IN ANY CAPACITY. YOU SHOULD NOT ASSUME THAT GRAYSTONE INVESTMENT GROUP LLC OR ANY OF ITS EMPLOYEES OR SUBSIDIARIES IS A REAL ESTATE BROKERAGE. WE ARE A WHOLESALER, AND ALWAYS ACT AS A SELLER OR ASSIGNOR ON EVERY TRANSACTION.

Want To Learn More About Real Estate Investing?

Sign up for our newsletter, and you'll receive our newest articles!

By clicking this button, you consent to receive emails, calls, and text messages about our products and services at the email address and phone number you provided. You agree that such calls may be made using an automatic telephone dialing system, they may be considered telemarketing or advertising under applicable law, and that you are not required to provide your consent to these calls to make a purchase from us. For more information about how we process your data, please click here to read our Privacy Policy.

Recent Articles

  • How to Get Started in Real Estate Investing
  • What to Expect at Closing
  • How Much House Can I Afford?
  • How Do Interest Rates Affect the Housing Market?
  • What Does a Realtor Do for the Homebuyer?

Get Started Right Now!

Get started investing in real estate with Graystone Investment Group.

For more information about how we process your data, please click here to read our Privacy Policy.

phone Graystone Investment GroupCall (813) 449-4323
Text Graystone Investment GroupSend Text to (813) 600-1658
Graystone Investment Group
3001 N Rocky Point Dr E, Suite 200
Tampa, FL 33607 USA
phone Graystone Investment GroupCall (813) 449-4323
Subsidiary Brands:
Graystone Acquisitions
Graystone Real Estate
Homes4Income.com
Rental4Income.com
RealEstate4Investing.com
Accessibility
Terms of Service
Privacy Policy

Recents Posts

  • How to Get Started in Real Estate Investing
  • What to Expect at Closing
  • How Much House Can I Afford?
  • How Do Interest Rates Affect the Housing Market?
  • What Does a Realtor Do for the Homebuyer?
  • What Does a Realtor Do for the Home Seller?

Categories

  • Articles
  • Cash Flow
  • Finance
  • Investment Tips
  • Market Reports
  • Real Estate Investing
  • Real Estate Market Stats
  • Real Estate Mentor
  • Recent Properties
  • Rental Property
  • Special Events
  • Tampa Real Estate News
  • Tampa, FL
  • Testimonials
  • Turnkey Investment Properties
  • Uncategorized
  • Wholesale Real Estate
Client Evaluation | Investor Profile | Rewards Program | Recent Properties | Pre-Approval Form
Legal Notice | Terms of Service | Privacy Policy
© 2023 GRAYSTONE INVESTMENT GROUP, ALL RIGHTS RESERVED. THE RENTAL4Income LOGO AND BRAND IS THE PROPERTY OF GRAYSTONE INVESTMENT GROUP LLC
DISCLAIMER: RENTAL4INCOME.COM IS A WEBSITE OF GRAYSTONE INVESTMENT GROUP LLC. YOU ARE HEREBY NOTIFIED THAT NEITHER GRAYSTONE INVESTMENT GROUP LLC, NOR ANY OF ITS EMPLOYEES OR SUBSIDIARIES, REPRESENT YOU IN ANY CAPACITY. YOU SHOULD NOT ASSUME THAT GRAYSTONE INVESTMENT GROUP LLC OR ANY OF ITS EMPLOYEES OR SUBSIDIARIES IS A REAL ESTATE BROKERAGE. WE ARE A WHOLESALER, AND ALWAYS ACT AS A SELLER OR ASSIGNOR ON EVERY TRANSACTION.
Internet Marketing by Image Building Media.