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How to Calculate the Value of Your New Home Without an AppraisalOne of the most important factors that affects the affordability of your home purchase is the market value of the home you plan to buy. If you don't know what a property is worth, it can be difficult to prepare yourself to buy it. Unfortunately, appraisals cost money, something you don't want to invest unless you absolutely have to. One way to get a preliminary idea of the value of the home you're considering is to conduct an appraisal of your own. Follow the steps below to review your home the same way a real estate professional would. Get the specs. Start by writing down all the important technical aspects of the home. How many square feet is it? How many bedrooms are there? How many bathrooms? Are there two floors? Three? Is there a finished attic? How large is the garage? How many square feet is the property? Gather all of these technical details. If you're a first time home buyer, ask your agent to help you determine what details are important. Note the features. Walk through the property with an agent and create a list of the property's notable features. This process may seem difficult or vague, but it isn't. Anything that isn't a wall or a ceiling or a basic fixture such as a light socket or kitchen sink is probably a notable feature. If there's a fireplace, write it down. Is the countertop made of unique stone? Is there a walk-in closet in the master bedroom? Is the yard landscaped? Look for features such as these. Compare. Locate three to five properties in the same neighborhood that possess specs and feature similar to those of the house you're buying. Find out what these homes recently sold for. This is much easier to do if you find homes in your neighborhood that sold within the past few months. Calculate. Calculate the average cost of the three to five homes. This average cost will roughly equate to the value of most similar homes in the area, including the one you plan to buy. Knowing the general price of a property before you advance too far into the mortgage process is helpful. You'll be able to better determine whether your credit score and overall financial situation will allow you to get the mortgage loan you need. |
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