Estimated Value of Your Property

If you are like many people, you always have an estimated figure of the balance you have in the bank in mind at all the time. However, most of the people don’t even care about knowing the estimated value of their biggest assets such as land and houses. Therefore, it is worthwhile to invest your time and some money in getting a picture of how much you worth.

Knowing the estimated value of your property also gives you a clear picture of your overall financial health. According to statistics, more than 73 % of the Americans say that it is imperative to know the estimated worth of their property for this reason. One study that was conducted online by The Harris Poll in August 2018 stated that people want to gauge their financial health just to be sure that they are on the safer side.

Tip 1 - Comparable Sales for Your Home

How do you calculate the value of your land? The secret is that your agent or appraisers just use comparable sales for your home. What are comparable sales and why do you need to know comparable sales for your home?

Comparable sales, comps or comparables refers to the transacted prices of homes similar in term of size and vicinity. It is important to know because that is how companies like Zillow, RedFin or appraisers estimate the value of your home. Therefore, a home similar to your home selling at a higher price will bring up the value of your home and vice versa.

Agents or appraisers have access to the Multiple Listing Service (MLS) which is a database of all the properties in a given area that have been listed “for sale,” are in process of being sold (pending,) or have already sold. Using the already sold listing, they can find the estimated value of your land or home.

If you are really interested to perform it manually, go to Zillow or RedFin and search for home based on recent sales, nearby your home and with similar floor size and average them. The concept "similar" is very vague and that is why the price value differs greatly across different valuation sites. Furthermore, a buyer might pay more or less than valuation due to the state of the home, e.g. well furnished and renovated.

Tip 2 - Price of Your Property

Are you wondering what the house or a piece of real estate property is worth? 

Short answer: a piece of real estate property is worth what someone’s willing to pay for it. However, the long side of this answer is that this value may also be determined by the changing market conditions over time. After the 2008 downturn for real estate, much has happened and the real estate world has improved significantly. If you haven’t checked the costs of your real estate, then you may be surprised to know how much it is worth today.

The good thing is that you can now be able to calculate the estimated value of your property with the use of online tools. These tools are now available to prepare you to buy, sell, refinance and perform several other activities on your land.

Today there are several ways through which you can estimate the value of your property. However, the most preferred are the ones listed below.

  1. Zillow Zestimate
  2. Trulia
  3. Redfin
  4. Homes.com
  5. Realtor.com
  6. Real Estate ABC
  7. Eppraisal.com
  8. HomeGain.com
  9. Chase Mortgage Services
  10. RE/MAX
  11. ForSaleByOwner.com

Which tool is the most accurate?

Given the many choices, which one should you use? Redfin claimed they have the most home within 3% of the actual price.

Redfin Vs Zillow Vs Homes.com

We also did a simple test recently and found the valuation of Zillow and Redfin can go off by 9% to 10%. Washington Post also reported that Zillow isn't any better in valuation now against the past. Therefore, these estimates are just based on best effort and these valuations with a pinch of salt. It is more important to find an interested buyer who is willing to pay the right price.

Address Sold Price Zillow Differences RedFin Differences
161 HARBOR OAKS Cir Santa Cruz, CA 95062 595,000 589,528 0.92% 591,604 0.57%
662 Escalona Dr. Santa Cruz, CA 95060 2,095,000 2,126,500 1.50% 2,033,232 10.38%
320 Continental St Santa Cruz, CA 95060 848,880 929,426 9.49% 885,906 1.77%

Tip 3 - Estimate your profit from property sales

One thing that most of the people don’t know is that it is very imperative to have is the difference between your selling price and your buying price is not profit

Here are some of the considerations when selling your home.

Upgrades and Repairs - You probably have performs several upgrade or repairs to your house (remember the leaking taps or squeaky door you fixed?). It gives you a clear picture of how much you spent.

The property tax bill We both know tax is inevitable. However, property taxes are directly related to the current value of your property. Also if you think that the local authorities have overvalued your property and that they are overtaxing you, then it is wise to go for an appeal using the estimated value of the property.

Conclusion

When you have a deal in mind; you usually want to know how much you will get at the end of it. Equally, when you are selling a house, it is vital that you get the biggest possible price. We understand that it is a difficult thing to establish a good price for your property if you don’t already have an estimate of how much it is worth in mind.

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