House Value
It is always good to have at least a general idea about how much your home is worth whether you are considering selling or not. When you know approximately what the property is worth before you obtain a property appraisal, which alone can be a deciding factor which influences whether or not you sell the home. Even if you got a property appraisal at the point of purchase, you may want to know if the home is holding that value. It is important that a home appreciate instead of depreciate. Of course it is always appropriate to contact a real estate professional like Abbe Edelman who can give you an accurate estimate of your home’s value by conducting a residential appraisal.
Home Valuation Tools
There are some online tools which are available to help homeowners determine their home’s worth as well. The home valuation tool asks pertinent questions of the homeowner and then gives them an approximate value based on the information that was entered. This can be a place to start but will not compare with getting a professional property appraisal done by a professional; but it can give you a general idea. It can also help create a basic understanding for what types of factors drive home values. You purchased your home for its inherent value. This includes the features that attracted you to the house to begin with. These are things like the architecture, landscaping, quality of construction and even just how you felt about the house. But the actual property value is based on other factors including direct factors and indirect factors.
Direct Factors which Influence a Home’s Value
The direct factors include things that surround the property; just the neighborhood a home is in can influence its value. The community includes things like city services, thriving business districts, and adequate resources. These factors will usually help increase a property’s value. But it can also be influenced by the history of the community or its identity and how it is perceived by outsiders. In general, homes that are worth more are located in neighborhoods which are safe, attractive and well located. These influencing factors help bring in stability and property appraisals which are steadily appreciating. Solid property values and good schools go hand in hand.
If your home is in a location where there is ample and efficient public transportation or a freeway nearby this can help increase the values assigned during a professional property appraisal. Amenities like parks, walking trails, libraries, and bike paths that are well maintained can influence the price homes in the community. These factors should also be considered when estimating the value of your home.
Indirect Factors which Influence a Home’s Value
There are several factors that are indirectly connected to determining the value of your home and if it has increased or decreased in value since the purchase price. The economy has an indirect effect; when the economy improves home prices increase and when the economy is in a depressed state, home prices decrease as do sales. Disasters can depress values at least temporarily. However, in areas where disasters recur the property values can decrease and stay permanently depressed. This can also affect the type of homeowner’s insurance that can be purchased. If a homeowner cannot obtain or maintain insurance, then lenders will not approve mortgages. When there are major changes in the demographics in an area it can affect property values as well.
Estimating Home Value
Before you purchased your house there was a professional property appraisal that was completed. By considering all the indirect and direct factors a homeowner can determine if the home’s value has increased, decreased or stayed the same. Of course there are other factors such as home improvements, renovations or additions that can also increase the value of the home. Speak to a professional appraiser such as Abbe Edelman who is familiar with the region to determine how these may affect the price of the home.
