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An exterior view of a blue bungalow home.
Cassidy Anthony | Feb 14, 2025
HomeRetirement & Finance

How Much is My House Worth?

How to Determine Your Home's Value

Whether you’re considering selling your home or just curious about its current value, knowing what your property is worth is crucial. Home value determines how much equity you have, influences property taxes and affects your ability to refinance. But how do you figure out what your home is really worth? This article will detail how to assess your home’s value, factors that impact it and online tools that can help.

1. Use Online Valuation Tools



Several online tools, known as Automated Valuation Models (AVMs), can estimate your home’s value using public data, recent sales and algorithms. Some of the most popular ones include:

2. Get a Comparative Market Analysis (CMA)

Real estate agents can provide a Comparative Market Analysis, which involves assessing recently sold properties in your area with similar features. A CMA will factor in details like square footage, lot size, number of bedrooms and condition of the home. This is one of the best ways to get a realistic idea of what buyers might be willing to pay.

3. Hire a Professional Appraiser

If you need a precise value—especially for selling, refinancing or estate purposes—hiring a professional appraiser is a smart move. Appraisers evaluate factors like:

  • The home’s condition.
  • Recent comparable sales.
  • The neighborhood’s market trends.
  • The property’s age, size and unique features.
  • Any improvements or renovations made.

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4. Check Local Market Trends

The real estate market fluctuates based on demand, interest rates and economic conditions. Researching how homes are selling in your neighborhood can give you a good idea of whether your home’s value is trending up or down.

5. Consider Your Property Tax Assessment

Your local tax assessor assigns a value to your home for tax purposes. While this figure doesn’t always match market value, it can serve as a reference point when estimating your property’s worth.

What Increases a Home’s Value?

Certain factors can boost your home’s value, making it more appealing to buyers and investors. These include:

  • Location and neighborhood quality. Homes in desirable school districts, low-crime areas and near amenities like parks and shopping centers tend to be worth more.
  • Upgrades and renovations. Kitchen and bathroom remodels, new flooring and updated appliances can significantly increase a home’s value.
  • Curb appeal. A well-maintained lawn, fresh paint and attractive landscaping create a positive first impression.
  • Energy efficiency. Features like solar panels, new windows and smart home technology can attract buyers looking for long-term savings.
  • Extra living space. Finished basements, attic conversions or home additions add square footage, making the home more valuable.
  • Recent sales in the area. If neighboring homes are selling at higher prices, yours may have increased in value as well.

What Decreases a Home’s Value?

Just as some factors boost value, others can drag it down. Here are some common value killers:

  • Deferred maintenance. Issues like a leaky roof, outdated electrical systems or plumbing problems lower a home’s value.
  • Neighborhood decline. Rising crime rates, declining schools or an increase in foreclosures can negatively affect home prices.
  • Outdated features. Old carpeting, wallpaper or outdated kitchens and bathrooms may deter buyers or result in lower offers.
  • Unpermitted renovations. If a home has unapproved additions or DIY projects that don’t meet code, it can be a red flag for buyers and lenders.
  • Over-personalization. Unique customizations (like a home theater or extravagant landscaping) might not appeal to all buyers, limiting demand.
  • Market condition. If the economy slows down or mortgage rates rise, demand may decrease, which will lower property values.

Best Resources for Determining Home Value

If you want an accurate assessment of your home’s worth, these resources can help:

  • Zillow, Redfin and Realtor.com. Get free online estimates for quick reference.
  • Real estate agents. They can provide a more precise Comparative Market Analysis.
  • Appraisers. They will offer professional, in-depth home valuation services.
  • County tax assessors. This information provides public records of assessed values for tax purposes.
  • Local real estate market reports. These reports can help track home sales and trends in your area.

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