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How To Determine Your Home’s Value

Estimated reading time: 5 minutes

Understanding how to estimate your home’s value can come in handy. It plays a part in determining everything from your home equity and insurance premiums to annual property taxes. When you’re ready to buy or sell a home, it can also help you settle on a good price. Here are 5 methods you can use to determine your home’s value.

Note: The following tools are subjective and should be used only to give estimates of a home’s value. They do not reflect the appraised value of your home, which can only be determined by a professional appraiser.

Top Takeaways

  1. Use a House Price Index calculator
  2. Obtain a comparative market analysis (CMA)
  3. Evaluate comparable properties
  4. Try free home value estimators online
  5. Hire an appraiser

Use a House Price Index calculator

The House Price Index (HPI) calculator from the Federal Housing Finance Agency (FHFA) uses a more research-based approach. This tool references mortgage transactions over time to track how a home’s value has changed from one sale to the next. It then determines your home’s value by estimating how home prices may change in the current market. The FHFA HPI calculator is best used for estimating future mortgage rate changes and tracking the appreciation of your home over time.

Obtain a comparative market analysis (CMA)

If you’ve ever sold a home, you’ve probably seen a comparative market analysis (CMA) before. Real estate agents usually conduct them before listing a home for sale to determine its value. These reports provide an estimated value of your home based on the agent’s evaluation and comparable properties or “comps.” To develop the CMA, real estate agents measure your home against similar properties’ recent list and sale prices in the multiple listing service (MLS). A comparable home is generally one that has a similar:

  • Number of bedrooms and bathrooms
  • Number of square feet
  • Lot size
  • Age
  • Condition
  • Features
  • Location, typically in the same or a nearby neighborhood

If you need help finding a local agent you can trust to create a CMA, check out Mr. Cooper® CooperCashback.* Search and choose your agent from some of the most-trusted brands in real estate. Mr. Cooper’s CooperCashback helps you feel confident that you are working with the best!

Evaluate comparable properties

Interested in trying your hand at determining your home’s value? Browse websites that include MLS listings, such as Mr. Cooper’s Street Smarts, to find recent sale prices for homes that are comparable to yours. Once you have found a few comparable properties, calculate the average sale price, and that is the estimated value of your home.

Try free home value estimators online

Many of the first results you’ll see when searching for “how to determine your home value” are links to online Automated Valuation Models (AVMs). These calculators use information such as addresses, square footage, public records, and comparable home sales to estimate the value of your home. Many lenders also use AVMs before a formal appraisal is done.

Although this is a fast way to estimate your home’s value, AVMs have their pros and cons. AVMs tend to work best in places that have an abundance of current local market data to compare your home to.

But, most are programmed to estimate the value for a property even if the available data is limited, according to CoreLogic. In addition, AVMs cannot determine the condition of a property. These assumptions can cause inaccurate estimates of the property.

Hire an appraiser

There is nothing more accurate to determine your home value than a professional appraisal. This method of home valuation is used by lenders to estimate home value and is required to obtain a mortgage. Although “the typical cost” of an appraisal is $500, according to the National Association of REALTORS® 2023 Appraisal Survey, they should deliver the most accurate valuation of the home.

If you’re ready to begin a homebuying or selling journey, Mr. Cooper wants to partner with you! Get in touch with one of our Mortgage Professionals at 833-702-2511 to learn about your loan options or apply online. And check out our all-in-one toolkit of exclusive offers designed to help you make your best move yet.

Tradenames and trademarks used in this blog post are the property of their respective owners. Nationstar Mortgage LLC d/b/a Mr. Cooper is not affiliated, associated, or sponsored by any of these owners. Use of these names and trademarks is not intended to and does not imply endorsement, but is for identification purposes only. Information provided does not necessarily represent the views of Mr. Cooper. Information is subject to change without notice.

*Mr. Cooper® CooperCashback Terms and Conditions

Mr. Cooper’s CooperCashback (“Program”) is offered by Mr. Cooper affiliate HomeSelect Settlement Solutions LLC. (“HSSS”). Referrals to HSSS may provide a financial benefit to Mr. Cooper. Cashback offered by independent referral real estate brokerages to customers after closing the purchase or sale of a property using a broker-introduced real estate agent. The amount of the cashback bonus is based on the purchase or sale price of the property and ranges from $300 for properties under $99,999 and $8,000 for properties $3 million and over.  Please check with referral brokerage for details. Cashback bonuses available in most states. Cashback bonuses not available in Alaska or Oklahoma. Offers not available for employer-sponsored relocations or transactions in Iowa or outside the U.S. In Kansas and Tennessee, consumers will be issued gift card. In Mississippi, New Jersey, and Oregon, a commission reduction may be available at closing. Cashback bonuses not available in certain transactions with restricted agent commissions (including many new construction, For Sale by Owner, or For Sale by iBuyer transactions). A Program-referred agent can help identify transactions where the cashback bonus is not available. Program terms and conditions are subject to change at any time without notice. Additional terms, conditions, and restrictions apply. Real estate commissions are negotiable between agent and consumer.

You are not required to use a real estate agent referred from the Program as a condition of receiving a loan from Mr. Cooper, and you are not required to obtain financing from Mr. Cooper to use the Program.

This is an advertisement and not a solicitation for agent representation if your property is currently listed with an agent. HomeSelect Settlement Solutions LLC, 8950 Cypress Waters Blvd., Dallas, TX 75019. Licensed Texas Broker, license # 588848; Anywhere Leads Inc.,175 Park Avenue, Madison, NJ 07940. Licensed broker in the state of Texas. Broker license #9009191; Clever Real Estate, 6358 Delmar Boulevard, Suite 300, University City, MO 63130. Licensed Texas Broker. Broker license #9010415; Jason Mitchell Real Estate LLC, 1000 Texan Trail, Suite 150, Grapevine, TX 76051. Licensed Texas Broker, Broker license # 728806; Vylla Home, 7600 Chevy Chase Rd., Suite 3, Austin, TX 78752. Licensed Texas broker, Broker License # 597813.