How Much Is My House Worth?
Just how much is my house worth? I hear it all the time. Getting ready to sell your house (or just wanting to know how much equity you have) sounds like a simple calculation but in fact, it does not have a simple answer.
In this article, I will show you how appraisers and real estate agents get close to the number, but at the end of the day, it’s whatever the market will pay. I’ve bought houses for 50% of their value and turned around a sold them for 100% of their value (making tens of thousands in the process) knowing some of the skill and resources you will find in this article.
On the flip side, not knowing this information can destroy your net worth quickly as more educated buyers (such as myself) can take advantage of you. I would know, I retired at 30 years old taking advantage of the fact that 9 times out of 10, I knew what a property was worth more so than the person selling it to me.
After spending 10 years as a real estate appraiser, 3 years as a real estate agent, it is truly mind blowing how little people know about real estate values. I will be going over Before I show you how to find this number on your own, it’s important to understand that a home valuation is not a fact, it is an opinion. Any real estate professional will tell you the same and if they don’t, run in the other direction because they are full of $***.
In this article, I’m going to answer all the FAQs I have gotten over the years as well as show you how to get a general value of your home. This information should only be used to satisfy your curiosity and should not be used to buy or sell a home (unless you are paying for an appraisal). Understanding how to lock down a property’s value can make you tens of thousands of dollars and if you don’t understand it, it can cost you the same. This should be taught in school.
Ok, let’s get started.
Is Zillow accurate for home values?
It’s important to understand what Zillow is and what they do. Per the Zillow website, “Zillow receives information about property sales from the municipal office responsible for recording real estate transactions in your area. “
Ok. So the accuracy of their data really depends on if your State gives them the sales data. In many States, this is legal. In many, it is not. If you live in one of these disclosure states, chances are Zillow can give you a pretty good indication of your homes value.
What is the most accurate websites for home values?
What is the best way to use online websites to know how much is my house worth? The most accurate website for home values are going to be searching the local appraiser websites and paying them for what they specialize in. As mentioned, the websites such as Zillow, Trulia, etc are only as accurate as the data they are legally allowed to mine. In disclosure States, we think they are actually pretty good (but not exact). Let me repeat, all of the online sources can get you in the “ball park” but they will not be 100% reliable and using them could cost you BIG TIME.
How do I find the value of my house?
You have a few options to nail down the value of your house. Deciding on which one really depends on your personal needs and your budget.
- Your local tax assessor – Almost all of them have home valuation data online for free. Just google your local county + your state + tax assessor and see what you can find. Here is a snapshot of typical valuation data that is public record.
- A real estate appraiser – This will be the most accurate answer as appraisers are trained for years. They understand all the dynamics of the real estate market. You should not pay for a full appraisal just to know the value of a property. You can ask for a “restricted appraisal” which should be about 75% cheaper than a full appraisal and the number will be the same. Full appraisal reports are much more time intensive due to banking and lending regulations. Search here for a great appraiser in your area. He will always know the answer to how much is my house worth.
- An experienced broker – A local broker can perform what is called a “brokers price opinion (BPO)” for about $50 – $100 for you. These BPOs are free if you promise to list with the broker.
- Websites – As mentioned, Zillow and other similar websites will give you a rough idea. Not perfect, but free is free.
We hope that you understand the value of a great real estate education. Understanding real estate terms and applying this knowledge them to value your property will make you or break you when it comes to retiring with a high net worth.