How to Value Your House
The Jackson housing market is complicated, and there is a lot of information out there. If you are looking to sell your house, how do you find out exactly how much your house is worth? This is an important question to answer before you put your house up for sale and throughout the sale of your house as the market is constantly adjusting.
With all of that being said though, we buy houses all the time, and our goal is to get your house sold fast, so we can help you navigate all of this.
Valuation
Simply put, valuation is the worth of a physical home and the lot of land. It is the worth of what you are putting on the market. However, when it comes to property, there are actually three valuations that are determined: fair market value, appraised value, and assessed value. Understanding these terms and their differences is helpful to you as a seller, but these are also extremely useful as a buyer.
Fair market value is how your house compares to other homes in the area (aka “apples to apples”). The size of the house, the acreage of the lot, the number of bedrooms and bathrooms, the design features — all of this information is carefully measured and calculated. The goal here is to figure out what buyers have been willing to pay for a property comparable to yours.
Appraised value is a calculation done by a licensed appraiser. This not only takes into consideration the fair market value components, but also the condition of your home and property. Any renovations completed are also calculated here (this does not include any renovations you’re planning to do, just the current state).
If you want to do renovations before putting your house on the market, it’s usually suggested to not do an appraisal right away. Do one after you’re done renovating so all upgrades can be taken into consideration. The appraised value is extremely important to banks if a buyer is looking at taking out a mortgage or refinancing their mortgage.
Assessed value is determined by county tax assessors to determine property taxes. Everything included in calculating fair market and appraised values are used to figure out the property tax, but it also includes if you generate an income from the property and tax exemptions.
Note: All three of these values will more than likely have different amounts, sometimes drastically different, so do not be surprised.
How Can I Calculate the Value?
Depending on whether you are just thinking about selling or a little more serious, there are a lot of tools out there to calculate the value of your house.
Online estimating websites that use public record information are quick and free. Two popular examples are Zillow and Realtor.com. While these sites are helpful in providing a ballpark figure, they should be viewed as a “take with a grain of salt” tool. They often include outdated information, have incomplete information, or do not include valuable considerations like renovations or curb appeal.
We talked about the assessed value above, and this is actually public record, so you can check your county or municipal auditor’s website for this information on your property. (And remember what we mentioned above about what is and is not calculated when determining assessed value.)
Many real estate agencies will offer a comparative market analysis or CMA. CMAs are great because they not only include a lot of data, but they are also up-to-date and done by a professional who knows your neighborhood, the market, and the specific characteristics of your home and property.
Another very specific and super detailed way to find out what your house is worth is to hire a professional appraiser. An appraisal on your home is done very similarly to a CMA.
It’s Fluid
Neighborhood statistics, geography, time of the year, and all sorts of market trends have a major impact on the valuation of your home and property. The housing market is very fluid, and there is no reason you have to figure this all out on your own. Remember people like us make a career out of buying and selling houses. We do this every day! In fact, We Buy Houses Jackson is one of your best resources. We can come and check out your house and make a cash offer for it. You won’t have any fees, and you get the offer without any obligations on your part. Simply fill out the contact form, and you can sell your house fast, without having to worry about red tape and complications.
