The American dream often consists of owning property. There are some apparent values to owning your own home, such as the return on investment, security, and dollar value. However, there are some other points of value worth mentioning. Assessing the value of property ownership can inspire you to know exactly how you value your property.
Understanding the dollar value of your property is heavily reliant on the neighborhood surrounding it. Although a home might be worth a few hundred thousand in a community with other similarly priced homes, it will not be in an area with homes that cost far less. Imagine putting a home up for $300,000 right next door to a home for sale, asking $100,000. It is highly improbable that the more expensive home would sell.
The most popular real estate websites offer online estimates at no cost. Think about the value estimates you may have seen on Zillow. These tools, known technically as the automatic valuation model (AVM), use various public records to determine the best guess for a home’s value. Of course, the prediction is just that – a prediction. An online estimate is not always an accurate assessment of your property’s value.
Slightly different from the AVM is the Federal Housing Financing Agency tool known as the HPI calculator. HPI, or house price index, is a more scientific method for estimating a property value. Simply put, the HPI calculator bases its estimates on the last several decades of mortgage transactions. While there are some ways the value can be miscalculated, like inflation or seasonal changes, it can be a tool of worth. However, it is essential to know that you can only use the HPI calculator on conforming mortgages.
To know precisely what your property value is, you need an appraisal from a professional. A realtor may estimate home value based on several factors, but they are not typically professional appraisers. A professional appraiser has the skillset to evaluate the market, the property itself, and comparable properties. Each of these factors plays a role in determining the value of a home or property.
Consider the value your home holds on a more personal level. Beyond the money, there is a lot of value in property ownership. For many people, homeownership means stability, building lasting memories, and having pride in something important that belongs to them. Owning property encourages people to work for what they have.
If you need something more tangible than the feeling of value in your home, Quinn and Associates is available to help you with your home value needs. Reach out for assistance today by calling us at (508) 588-5600, or by sending us an email at firstname.lastname@example.org.