Estimating a home’s value is one of the hardest parts of the real estate market. With the constant fluctuation of the price of properties and landscapes, keeping track of your property’s net worth or the value of a house can be challenging. This is where a home value estimator tool comes in handy.
When planning to sell a property, apply for a mortgage, or assess your assets, having an accurate estimation of the value is essential. Unfortunately, since the market value of real houses can be like a roller coaster, your final guess can be pretty far from the actual value. However, when you use a tool that can show the result with precise accuracy, the process will be smoother.
In this article, we will explain all about home value estimator tools, which with their features will surely make your life easier.
Factors That Influence Your Home’s Value
The value of any property depends upon different factors. To calculate your house’s value yourself, you must first know which points to consider. Certain factors will directly affect the overall worth of your properties. Here are some of them:
Location
Location is widely recognized as the primary factor influencing a property’s value. It’s clear why a house in an urban area costs more than one in a suburban or rural setting. The answer is simple – the cost of the improved lifestyle and facilities. In a developed area, there are more income opportunities, better utilities, and civil amenities, which add a great value to the price. The price of properties can vary significantly even among different cities, depending on their popularity and accessibility.
Size of Property
It’s understood that a larger property will generally cost more than a smaller one. Realtors calculate the exterior and interior size of the house separately when estimating its worth. Some size factors to consider when guessing a house’s value are:
- The number of bedrooms and bathrooms
- The length and width of the house (in square feet)
- The length and width of the yard, pond, or other landscaping features (in square feet)
Type of Property
There are so many house types that can influence the value. Detached homes generally cost more in comparison to attached ones. Similarly, luxurious properties like apartments, bungalows, or duplexes come at a greater price than townhouses or similar housing options.
Condition or Facilities in the House
While many of us long for classic or traditional features in a home, the demand for modern facilities is always higher. As such, the latter also has a higher cost. If your estimate for the house’s value is lower than expected, a simple renovation can increase it. When considering a renovation, it is also mandatory to know where to focus. Kitchen or bathroom upgrades should be your first go-to for an instant rise in the home price.
Also Read: 10 Home Renovations That Will Decrease Your Property Value
Age of the House
An old house may have various issues with its foundation, roof, wiring, plumbing, insulation, HVAC system, structural integrity, etc. While old houses may have been constructed with stronger materials, it is not necessary that they hold the same integrity decades later. Their structure may have survived the test of time, but the buyers often find such houses unreliable. No one wants a house that may not last for their lifetime. A newly built house will sell for more in comparison.
How Can Home Value Estimator Help You
A home value calculator considers all the abovementioned factors when estimating a property’s value. As a result, the outcome is nearly 90 percent accurate. As you can guess, it is not easy to estimate the cost of a home yourself, especially if it is a bungalow or duplex. Yes, you may hire a professional, but it will be expensive and time-consuming. However, with the help of a home value estimator tool, you may complete the process within minutes. Here are some reasons why these tools are better:
User-Friendly
Using a home value estimator is quite easy. You only need to input some simple information, like your home’s address and size to get the outcome. Many tools even allow the user to edit the inputs even after it has shown a possible cost to get an updated result.
Accuracy
As we mentioned, a home value estimator tool provides great accuracy on the basis of information provided to it. These tools are also updated with the latest market trends and prices to generate the right results. Aside from the historical market data, some of the tools also consider the features and traits of your house. So, if you have anything unique to your house that most others don’t, the estimator will also take that into account.
On top of that, many tools also consider the property’s age. Therefore, even if the house is a duplex located in a prestigious area, the estimator may still show a low price if it is very old and has not undergone recent renovations.
Estimated Range
Home valuation tools will give you a starting point in determining your home’s price. There are options that also provide a range of possible rates from the lowest to the highest. So, you can plan better and ask for a slightly higher price than the middle point from any buyer if you want to have a better profit. Moreover, if you want a mortgage loan, you know how much you can aim for.
Conclusion
If you are in the real estate business or a homeowner who is planning to mortgage or sell your property, you can’t deny the benefit of a good home value estimator tool. They eliminate the need for manual research and reduce the time spent waiting for an appraisal.
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