Whether you’re trying to get ample insurance coverage or you’re preparing to put your home on the market, learning how much your home is really worth is a great first step. There are many things to consider when it comes to putting a value on your home, though. Here’s what you need to know.
What’s the Most Effective Method?
By far, the best data to use if you want to calculate the value of your PA home is called the CMA, or Comparative Market Analysis. This uses real market samples of homes sold in your local area, down to your neighborhood or subdivision, to give you an accurate price based on location, square footage, and current demand. There is no other method more accurate, and it works automatically to provide you with your home’s estimated current market value. Trends change quickly, so being able to stay up-to-date with the most recently sold homes can help you list your home for the right price.
What About Tax Assessed Values?
If you’ve thought about setting the asking price for your home at the tax assessed value, you might be selling yourself short. Most states set the tax assessed value at anywhere from 80% to 90% of its Fair Market Value, or FMV, which is determined by using the CMA. This means that putting a home on the market with a price determined by its tax assessed value can result in losing 10% to 20% of the potential funds you can get from it. It’s always best to stick to an estimation of the current market value.
Should You Call an Independent Appraiser?
There are certainly some benefits in contacting an independent appraiser when you want to know how much your PA home is worth. An independent appraiser is a fantastic choice when you are considering purchasing homeowner’s insurance. It’s also a great option if you’re truly interested in buying a home, but you want the opinion of someone you trust and who is working purely for you. An independent appraiser can also provide you with more relevant information, particularly if the figures that are available for the home are outdated.
How Often does the Value Change?
When it comes to FMV, which is what you should ask for your PA home when you sell it, keep in mind that it’s the fair price for your home given current real estate market conditions. Should real estate market conditions change, then your FMV also changes. This figure is based on the notion of supply and demand, as well. The longer your home is on the market, the more its FMV drops. If your home is customized or has luxury features, you may be able to ask more than the FMV.
Understanding how much your PA home is worth can help you make many different decisions. It allows you to purchase the right homeowner’s insurance, set the right asking price for a home you want to sell, or even make sure that you’re getting a great deal when it comes to buying someone else’s home.