What is My Home Worth? I Need an Estimate!
A Brief Overview of Home Value Estimates
Current Market Value Estimate
There are as many online opportunities to request a Current Market Value report as there are Realtors with a website. And you usually only give us the bare facts like bedroom and bathroom count; square foot of living space; lot size; and whether or not you have a pool. Who wants a Realtor in their house when they don’t even know if they are ready to sell, right? So you enter all of your data and say “what is my home worth – what will my house sell for right now?” You’ll most likely receive an answer in the form of a range of prices, from low to high, which you can then use to apply to your own opinion of how your house stacks up against the homes similar in size and bed/bath count to see where you land within the range provided.
As-Is vs Upgraded Value Estimate
Many sellers want to know what kind of return they are likely to get from an investment in upgrades to their home. Or asked another way, how much less they will likely get for their house if they sell it the way it is. This is a tricky area when it comes to the math, but suffice it to say that recent upgrades in the current prevailing style, finish, and fashion will fetch more money than a home with no upgrades, or upgrades that were done 20 years ago and are no longer in step with the current trends. Sharpen your pencil.
Highest Current Value Estimate
Many times Realtors are asked to provide an estimate of the highest possible value of a home, so owners can evaluate whether or not they can potentially re-finance into a better loan, get rid of the Private Mortgage Insurance (PMI), and pull a little cash out to add a pool. This exercise often involves really scouring the comparable closed sales to find any little shred of evidence that will increase the estimated value of the home that an appraiser might be able to use to set the current value for the bank to justify the increase in value from when the home was last appraised.
Lowest Current Value Estimate
Believe it or not, there are times home owners are trying to justify the lowest possible value of their home. One reason is to provide evidence of lower value to contest my current value set by the Tax Assessor and potentially lower your annual property tax bill. Another reason is in a divorce situation, when one spouse wants to buy out the other spouse to keep the house. The spouse having to pay off the other owner is looking for the evidence to show the lowest value possible in order to keep the buyout cost as low as possible. The spouse being bought out will be looking for the highest price possible in order to walk away with as much money as possible. Sometimes both parties submit evidence to their respective attorneys, most likely provided by two different Realtors. Then the attorneys duke it out to establish the value of the house for purposed of the buyout.
And there’s always the Zestimate, which is a story for another time.
I’m Leslie Eskildsen, Realtor.
Call me. Text me. 949-678-3373
Email me. Leslie@LeslieEskildsen.com
Helping you make the right move in Mission Viejo, Coto de Caza, Rancho Santa Margarita, Irvine, Laguna Niguel, Laguna Hills, San Juan Capistrano, San Clemente, Laguna Beach, Newport Beach, Dana Point, Corona Del Mar, and other Orange County communities.