How Much is My Home Worth In the Current Economy?

A lot of homeowners are curious to know how much their homes are worth in the current economy, and it’s easy to understand why. The subprime mortgage crisis has caused home values to drop all over the country. In certain areas, such as California and Florida, values have dropped considerably. Millions of homeowners are underwater in their mortgages, meaning they owe more than the home is worth in the current market.

On top of this, we are now seeing the lowest interest rates we’ve seen in decades. This encourages homeowners to refinance their mortgage loans, in order to capitalize in record-low rates.

But you can’t refinance without a certain amount of equity, or ownership, in your home. And this is why so many people are asking the question: What is my home worth in the current economy? After all, you can’t determine your level of equity without knowing the current value of your home. So let’s talk about how you can get your home’s value.

Get a Professional Appraisal

If you really want to find out what your home is worth in the current real estate market, you should pay for a professional appraisal. This is where a licensed home appraiser visit the property to evaluate it from every angle. He will take into account any improvements you’ve made to the home, which is something a website (next item) cannot do. He will also use recent sales data to form an accurate pricing picture. When all is said and done, you’ll have an appraisers report in hand — and a much better idea of what your house might be worth.

Use a Home Value Website

In the previous paragraph, I touched on the subject of home value websites. These days, you can find dozens of these sites online. Some of the big ones are:

• Zillow.com
• HouseValues.com
• HomeGain.com
• Eppraisal.com

These websites get their data from public sources, such as tax data and recent sales in your area. But they do not take into account upgrades, improvements, or aesthetic items such as landscaping and views. For example, a website has no way of knowing about the kitchen remodeling project you did last year, or the new deck or swimming pool you’ve added. They are useful for getting a general idea of how much your house is worth, but they are typically not as accurate as a professional home appraisal.

Have an Agent Tell You What It’s Worth

If you’re planning to sell your house, and you’ll be using a real estate agent to help with the process, your agent can help you figure out how much your home is worth at present. An experienced agent will be able to perform similar functions as a home appraiser. He or she will use recent and comparable sales in your area to help you determine the asking price.