How much is your home really worth?

Evaluating one's own home plays a central role for property owners, whether during refinancing, selling, or tax-related matters. A clear understanding of the property's value can be highly beneficial for future decisions. Real estate agent Andrea Saturno-Sanjana emphasizes the importance of this knowledge, as it is essential in personal finance management, similar to having a grasp of one's bank balance. Various factors influence the value of a property, including both controllable and unavoidable elements. The three main categories of value are crucial: the estimated value, market value, and the officially assessed value. The estimated value is determined by expert appraisal but does not always reflect the sale value. The market value is aligned with the price potential buyers are willing to pay and is influenced by factors such as supply, demand, and location, explains Drew Heberer, founder of Heberer Homes. The officially assessed value serves tax purposes. It is based on the house's typology, square footage, and other geographical conditions and is usually lower than the market value. For an initial assessment, homeowners can use various tools, including online evaluations on platforms like Zillow or Redfin. A thorough market analysis by a real estate agent also offers valuable insights. These consider the sale prices of comparable properties and utilize the agent's market knowledge. A detailed appraisal by a licensed appraiser provides the most accurate valuation by analyzing the house’s condition and features, as well as local comparable sales. This professional valuation is indispensable when a loan for a property purchase is being considered and ensures that the bank does not lend more than the house is actually worth. Determining a property's value is an ongoing process influenced by numerous internal and external factors. Heberer points out that insufficient maintenance or economic downturns can negatively affect a property's value.