How Can I Estimate What My Property Is Worth?
You see homes selling for a lot of money in your neighborhood and think, “I wonder what the value of my home would be?” In a changing housing market, the sold price depends on many factors, and sometimes you’re not sure where to start in finding the best information about your home.
Fortunately, our expert Jesse Allen, from Jeffersonville, Indiana, is a top-producing agent who specializes in single-family homes and knows what determines value. As a homeowner, being aware of these details can also make your life easier when making financial decisions.
How are property value estimates used?
Property value estimates are generally used by banks, insurance companies, and homeowners for determining how or if financial transactions can move forward. For instance, if the value of your home doesn’t equal the proposed financed value, it would be considered a risk for the bank. Financial institutions usually want the value to be high enough in case they need to sell the home to recoup their investment.
If the home is underwater (worth less than the resale price), then financing would usually be considered a high-risk investment for the bank, which could result in a potential loss.
Reasons homeowners might need or use a property value estimate:
Financing or refinancing a loan
Calculating the net proceeds of a sale
Obtaining homeowners insurance
Developing a home pricing strategy
Baseline for selling a home in the future
