| Your home might be worth more than you think. | | | | use three approaches when evaluating your home: |
| Whether you're happily settled, or getting ready | | | | the cost approach; the sales comparison |
| to sell, it never hurts to know how your | | | | approach; and the income approach. The cost |
| investment is doing, especially if you've lived in | | | | approach estimates the value of your property |
| your home for a long time. Population increases, | | | | by summing the land and depreciated value of |
| new homes or amenities nearby, and economic | | | | any improvements, while the sales comparison |
| trends can all impact on property value, and might | | | | approach examines the price of similar properties |
| change how you feel about your investment. | | | | in your area, and the income capitalization |
| As an expanding industry, property valuation has | | | | approach capitalizes an income stream into a |
| become very accessible to homeowners who | | | | present value, for commercial and investment |
| want some quick numbers. There are a variety | | | | properties. |
| of new property evaluation services competing to | | | | Many real estate professionals also offer home |
| appraise your property first, and many of them | | | | appraisals, which they commonly referred to as |
| are free. As a result, service from traditional | | | | Comparative Market Analysis. This service usually |
| home evaluators has also improved dramatically in | | | | involves the sales comparison approach, and is |
| recent years. | | | | almost always offered free of charge, since real |
| Getting a home value estimate from a | | | | estate agents see it as a valuable lead generation |
| professional appraiser is still the most reliable way | | | | tool. A real estate agent can also provide a reliable |
| of checking your home's value. In the U.S., the | | | | referral to a professional appraiser. |
| quickest and easiest way to find someone for this | | | | While hiring a traditional appraiser might provide |
| is through the Appraisal Institutes's list of | | | | the most accurate estimate of your home's |
| Associate Members. The Appraisal Institute is the | | | | value, many property owners are taking |
| largest and oldest group of professional real | | | | advantage of free home appraisal services that |
| estate appraisers in the world, with more than | | | | offer a less accurate figure. The most prominent |
| 22,000 members. Here you're likely to find one or | | | | of these is real estate media source Zillow, which |
| two home evaluation professionals in your area, | | | | compiles as much information as possible on an |
| no matter how remote it is. A typical fee from an | | | | area to provide home value estimates. |
| appraisal institute associate can range anywhere | | | | Knowing your home's value can help you plan for |
| from $200 to $500, depending on the size of | | | | the future more effectively, and decide whether |
| your property, and number of buildings on it. | | | | or not it's time to sell. With all the property |
| Outside the U.S., prominent industry groups include | | | | evaluation resources available these days, you can |
| the Appraisal Institute of Canada, and the Royal | | | | check up on your investment with little stress and |
| Institution of Chartered Surveyors. | | | | effort. |
| A professional real estate appraiser can typically | | | | |