How To Learn The Value Of Your House


11 January 2023

Real Estate

Value Of Your House

There are many reasons to want to value a house.

A new addition to the family may need additional rooms, a work promotion in another location, or even just time for a change may require the home to be sold.

Another reason to value a property is to identify a person’s current financial position. This may be necessary for those starting a business or needing additional finance.

How do people learn the value of their houses? Here are three ways.

Top 4 Ways Of Learning The Value Of Your House

1. Online Valuation Tools

Online Valuation Tools

One of the easiest ways to get a valuation is to use one of the many online valuation tools available. They use public data to price your home.

These tools use the automated valuation model (AVM). The valuations are based on data retrieved from public records like deeds of ownership, property transfers, and tax assessments. A mathematical formula is also applied, taking data from recent sales in the area.

The challenge with relying on AVMs is that they’ll value every property, regardless of the available data, possibly giving an inaccurate value.

To effectively use an AVM, do it from a real estate site that also includes a ‘confidence score.’ This value means a professional has checked the result from the AVM and given a score based on how close it is to market value. Any AVM plus a confidence score over 90% can be considered.

2. Comps


One of the most common ways to get a current value for a house is to check out recent sales in the same area.

Take a look around the neighborhood at comparable homes. These are known in the industry as ‘comps.’ When made public, the results of these sales can be an easy predictor of the values in the area.

An ‘apple for apples’ approach needs to be applied here. If the house next door is a little more run-down but has an additional bedroom, that value isn’t a good comparison. If one down the road, with an equal number of rooms, was renovated around the same time, that’s a closer valuation.

The way to get the best valuation for your home is to find four comps — two at the higher price range and two at the lower. Go for something that’s somewhere in the middle.

Remember that values change quickly; any sale over three months ago may not match the current market.

3. Professionally Appraised

Professionally Appraised

The most expensive but arguably the most accurate way to value a home is to get it professionally appraised. These people have seen hundreds to thousands of comparable properties and can give you a correct value.

A 2018 survey revealed that ¼ of US homeowners valued their properties this way.

Lenders will require an appraisal before approving a mortgage; however, they’ll want it done by their own appraisers.

Appraisers may even suggest changes that can be made to increase the property value.

A professionally presented pre-purchase appraisal by a reputable appraiser makes it easier for the potential buyer to decide. This is one task that they don’t have to do.

Appraisers are independent contractors. They get paid per appraisal; they don’t earn commission and therefore offer unbiased opinions.

4. House Valuation Made Easy

House Valuation Made Easy

Using an AVM is the most convenient way for a person to value their home; however, it’s possibly the least accurate.

Spending the time to compare recent sales on comparable properties in the area is a closer way to get a more accurate price. Choosing a value mid-range of these is the best way.

Unbiased professional appraisers will provide the most accurate value, but at a cost.

Whether using an AVM, checking out local comps, or hiring a professional, there is one surefire way to know the value of a house.

The value is whatever someone else is willing to pay for it!


Sumona is a persona, having a colossal interest in writing blogs and other jones of calligraphies. In terms of her professional commitments, she carries out sharing sentient blogs by maintaining top-to-toe SEO aspects. Follow more of her contributions in SmartBusinessDaily

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How to Choose the Right Commercial Collection Agency

It’s a scenario no business likes to be in, but one that may end up experiencing: having to collect money from late-paying customers. The bottom line is that your business isn’t a charity, and you need every dollar account for in the revenue flow if you want to succeed and expand. But how do you go about collecting money owed to you in a way that doesn’t alienate or spook a potentially longstanding client?It is a tricky question, and one best solved by a commercial collection agency. But before you go outsourcing collections to the first agency you find – who may very well use intimidating tactics that could spoil your customer relationship – consider the kind of agency you want. This article will help you in your decision, listing a few key indicators of a successful, non-disruptive and worthwhile commercial collection agency. Look at Their Recovery Rate Before this article gets into matters of how a collection agency collects (which is an important consideration for your business), it is perhaps best to judge them on purely statistical merit. The best way to go about doing this is to look at their “recovery rate” – the amount of debt in a given time, divided by the amount of debt returned – and compare it to the industry average. For instance, an industry leader like has a recovery rate double the industry average, a clear indicator of performance and success. Diplomacy is Key Debt collection has a negative reputation, thanks in large part to some agencies who collect unethically, and who use strong-arm tactics to meet their bottom lines. This is not the kind of commercial collection agency you want to fraternize with – their blunt and abrasive approach is likely to tarnish your organization’s hard earned reputation. Instead, choose a commercial collection dedicated to diplomacy, one who understands the first-party collection just as well as third-party, and understands the value of maintaining your reputation. How Do They Make Their Money? Most commercial collection agencies worth their salt will post this loud and clear on their website; if they don’t, be wary. Do they require upfront costs and ongoing work? If so, give them a pass. If, on the other hand, they run a contingency model – where they get paid from what you get paid, if you get paid –that’s the sign of an honest, confident agency. Issues of Transparency You as a business have a right to know how your case is doing. To that end, try and find a company that strives to keep you updated, preferably via real-time software, on the status of your case. The best agencies have nothing to hide and will be more than happy to oblige in this request.Needing a commercial collection agency is not typically a situation businesses plan to be in, but it is sometimes necessary. To avoid overpaying for an ineffective, avoidant, reputation-tarnishing commercial collection agency, follow the tips above, and regain the money owed to you.Read Also:Why You Should Use A Recruitment Agency To Find Your Next Medical Job Top 7 Reasons To Hire A Private Detective Agency During Divorce Cases How To Start Social Media Agency In India

Buying House

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Estate Planning

5 Mistakes To Avoid In Estate Planning

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