Your home is not just a shelter. It is an investment and a picture of your financial health. Whether you like it or not, other people will have their praises about your house. As a homeowner, it’s time to evaluate how much is your home value.
Knowing your home value is essential, especially if you want to renovate your house and increase its worth. Another thing is you can use it as your reference when selling to new homeowners.
Now, do you want to determine your home value? There are a lot of calculations and ways on how to do it. In Texas, they trust Mortgage Broker Arlington. Aside from this, if you want quick and easy, here are the three easy ways to determine home value.
3 Easy Steps to Calculate Your Home Value
Free Online Home Value Tool
Most of us immediately search for an answer online. The reason is it’s easy and quick, especially if there are resources available. You can also do this in calculating your home value. Use a free home value tool online. The technical term for this is the AVM or automated valuation model. Lenders and real estate companies offer this tool for free.
But be cautious about the things online. Not everything is accurate. Since this tool is open for the public, it will only give you an estimated result. Why? Because every AVM has its way of calculating. For example, AVMs used by lenders are different compared to real estate professionals. There are also professional-grade AVMs, but you can’t easily find this online.
FHFA House Price Index Calculator
What is FHFA stands for? FHFA means the Federal Housing Financing Agency. The Housing and Economic Recovery Act of 2008 (HERA) establish this agency. So what do they do? FHFA duties and responsibilities include the supervision and regulation of the housing industry. They also provide a calculator for home value.
The FHFA house price index (HPI) calculator is more scientific compared to other house pricing tools. They do this by gathering millions of mortgage transactions since the 1970s. This research includes data from Mortgage Broker Arlington. Which means, they can track how one house change in value from one sale to another. They use this list to estimate how it fluctuates in today’s market.
Good Read: About Federal Housing Financing Agency
Did you know that lenders demand an appraisal before they approve mortgages? But if you’re the property owner, you can always hire an appraiser to estimate home value for you. According to the latest survey, there are 28% of homeowners in the U.S. choose a professional appraiser. Yes, you can use different housing calculators, but you will get a more reliable result when you talk to appraisers. They are human beings who take a look at your house and not just a tool you can search online.
Some of the things appraisers evaluate are market, property, and comparable properties. All these things are necessary for home value. If you haven’t found one yet, check Mortgage Broker Arlington.
So, Why is it Important to Know One’s Home Value?
Your knowledge about home value doesn’t only benefit you when you buy or sell a property. Home equity lines of credit, annual property taxes, insurance, and refinances are based on home value. Even if you’re not working on a real estate company, it is necessary to know this to have control and oversee the processes. You can pay lower property bills for this.
Good Read: How to Determine Home Value