Getting ready to sell your house, looking to refinance or to buy a new homeowner’s insurance policy – these are just three of many reasons you’ll find yourself trying to figure out how much the value of a home is.
The science behind calculating the value of a home and what it means for your home’s sale price is determining how much your home is worth which is a complex process that depends on a number of factors.
Perhaps, your home may be your castle, your personal feelings toward the property and even how much you paid for it a few years ago play no part in the value of your home today. In short, the value of a home is based on the amount the property would likely sell for if it went on the market.
Homes are the most expensive, most emotionally impactful, rarest sale and purchase in our lives. There are many myths, lies, and bad advice you’ve been told about real estate and the value of a home. Best real estate agent in Wanneroo, provides you with the true knowledge of your home’s value, and they can communicate with different buyers and sellers at different times.
Here are some myths and lies, we’re getting about real estate.
- Your trust an algorithm knows the value of a home
- You think your neighbor’s house will tell you about your home’s value
- You believe the appraiser sets the value
- You underestimate the role of realtor
- You can save 6% by selling the house yourself
For a better understanding of what your home’s value means, here’s our breakdown on the value of a home and how you can determine how much your house is worth.
What is the value of a home?
Determining a home’s value is a bit more complicated, and often it isn’t just up to an individual homebuyer. The process is not as easy as it seems to be because unlike other transactions, such as stocks and shares, real estate transactions do not occur frequently and are unique in their nature.
The process of developing an opinion about the value of real estate property is required. Different professionals appraise properties differently for a variety of reasons. Here’s a look at common appraisal scenarios.
- Lender Appraiser
In the process of the sale of a property, the appraisal most often happens once the property has gone under contract. The lender chosen by your buyer will hire an appraiser to complete a full report on the property, having all the details of the house and its history, moreover, full report of the deals that have closed in the last six months or so.
- Appraiser you’ve hired
If you haven’t yet reached the point of putting your house on the market and are struggling to determine what your asking price should be, especially if you’re struggling to agree with your real estate agent on what the most likely sale price will be, hiring an appraiser ahead of time can help you get a realistic estimate.
- Tax assessor
The value of a home is also determined for the purpose of annual property taxes. In addition, to get the details of recent sold houses, the tax assessor also looks at what the cost would be to build a similar house, whether you’ve done any recent renovations if you earn income from the property in any way and the cost of upkeep.
How To Increase My Home’s Value?
Whether you’re planning to sell now, in a couple of years or you’re simply looking to make your home as valuable as possible in the long term, you can prospectly help to increase the value of a home with regular maintenance, renovations or even some more additions that could appeal to homebuyers.
Many homeowners are actuated to add value to a property when they’re preparing to sell their house. Here are some short-term values to be added.
- Fresh paint in neutral colors
- New landscaping outside
- Smart thermostat to save energy
- New or refinished cabinets
- New or well-maintained roof
- New or well-maintained furnace or air conditioning
If you’re looking to make changes to your home so it’s on par with a whole different caliber of properties in your neighborhood, consider these larger construction projects:
- Master suite addition
- Guest bedroom add-on
- Finished basement
- Garage construction
- Complete kitchen renovation
- Bathroom addition
If you’re looking to increase your home’s value for the sake of your overall wealth, however, the best thing you can do is continue to pay off your mortgage and gain equity in the property. With proper upkeep, real estate will of course increase over time.
Many thoughts go into preparing your home for sale, and you mostly get confused in between them. The best way to know the value of a home is to talk to a trustworthy Wanneroo real estate agent about your home’s value.
Best real estate agents in Wanneroo, Professionals agency helps in choosing the best method depending on the type and use of property and the availability of information and that’s why it is known as the best Wanneroo real estate agent.