Whether you’re considering selling your home or refinancing, you may be wondering how much equity you have. The exact equity is found by subtracting the amount you owe on your home from the appraised value of the home. Even if you don’t want to hire an appraiser to get this exact figure, there are ways to estimate your equity to inform your personal decision-making process. Looking to an online home price estimator or a real estate professional are both great places to start. You also need to calculate how much of the principal on your loan has been paid down since you purchased your home, and therefore how much you currently owe.
A Good Estimate
If you don’t want to hire an appraiser to get an exact number, there are a few ways to estimate your home’s value. An internet search of comparable properties in your zip code and give you an idea of what homes like yours are listed for, as well as a general price per square foot. Many online real estate listing websites also offer free home price estimators, where you can enter your home’s information and a reasonable estimate will be generated.
Related: How to Take Advantage of Your Home’s Equity
These estimators will use information like square footage, bedrooms and bathrooms, zip codes, and other basic information that can be found publicly online. It only asks for your home address and the rest of the information is found without your assistance. Any major home renovations that are likely to raise the value of your home may not be taken into account if they happened after the most recent time your home was listed, so keep that in mind.
Speaking with a real estate agent is a more thorough, but usually still free, way to find out what your home would sell for. A real estate agent will take into account the condition of the home, square footage, bedrooms and bathrooms, the desirability of the school district and neighborhood, and lot size.
The main distinction between an online home price estimator and a real estate agent’s estimate is professional and personal attention. A real estate agent will be able to tell how valuable any renovations or remodeling are, as well as what kind of condition the home is in. The best place to start if you seriously want to know the value of your home is to work with a real estate professional.
For more information on utilizing your equity for paying off bills, college, home improvements or some other reason, give me a call at any time. We can discuss the possibilities of using your equity to increase the value of your home and give you some breathing room.
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