In my own recent experiences, this is a very popular question for anyone who owns a home.
Some people feel that their home is worth the same today as it was in 2005, at the peak of the housing boom. Some people feel that their home cannot be worth less than what they paid for it, even if they bought it within the last few years. And there are some people who feel that their home is worth less than what they paid for it (or what they owe on their mortgage).
The real question is, how do you really know what your home is worth today? To keep this post short and sweet, there are 2 popular methods you can use:
- Get a Free CMA (Comparative Market Analysis) - A CMA is typically an up-to-date market analysis of your home that uses recent comparable sales (within a reasonable distance) to determine the estimated value. It uses prices, dimensions, and marketing statistics to analyze what the recent competition has done. This can be completed for you by a licensed agent and is typically free.
- Get an Appraisal - An appraisal is a report that provides an expert estimate for the value of your home. This will be more in depth than a CMA as it will go deeper into detail to determine an estimated value (i.e. exterior/interior finishes, square footage, etc.). This can be completed for you by a licensed appraiser and can cost anywhere from $300 - $600 (on average).
So, whether you are looking to rent, sell, or refinance on your current home, you should always be aware upfront of what your home is currently worth. If you need any assistance in getting either of the above 2 options accomplished, please don't hesitate to let me know.