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“How Much is My House Worth?” 4 Ways to Find Out
It’s important for homeowners to always have a good idea of their property’s value, even when they’re not planning on moving any time soon. As with any major investment, asking the important question: “how much is my house worth?” and following up with regular checks on how the value is changing (or not changing) is a critical part of ensuring long-term financial health. And thankfully, there are a number of easy—and usually free—ways to check in and receive an up-to-date analysis of a home’s current market value.
There are multiple of reasons to keep a close eye on what your home is worth, including and aside from possibly wanting to sell it soon. For starters, your home is part of your net worth, which is itself a good indicator of your current financial well-being. And because you never know when you might want to take out a home equity line of credit, it’s good to always have a general idea of what you could borrow against.
Of course, “how much is my house worth?” is, ultimately, about knowing how much you can get for it if you decide to sell. Many real estate professionals recommend keeping tabs on your property’s value in the two or three years leading up to when you want to list it so that you can track any key trends and, if feasible, take advantage of an upswing if it presents itself.
So how do you figure out how much a home is worth? Here are four ways.
Use an automated home value estimate tool
Ask a real estate agent
Do your own comp analysis
Get an appraisal
The bottom line
How much your house is worth is a combination of both real and perceived variables. No estimate is perfect though—the only value that really matters is the amount you can get from your buyer or the bank. But if you keep on top of your home’s estimated value, as well as the trends dictating your local market, you won’t have to worry about facing sticker shock when the time comes to find out what your property is really valued at.
If you’re ready to sell, start looking at comps and get an online estimate early on in the process. While your real estate agent will help you set the best price for your home, it can be incredibly helpful to do a bit of your own research so you’re not completely out of the loop on how and why your home is being priced as it is.