What is My Home Worth? Some people may think that getting an appraisal will help calculate the value of their home. However, appraisals are meant to calculate risk tolerance to a bank and not market value. Others may use automated valuation tools found on many real estate websites. Although these may be interesting data points, these methods use past sales in order to ascertain current market value. This can often be misleading.
when estimating a single property’s value due to variations in a homes construction quality, maintenance, updating, age, style and presentation. The prefered method for calculation of a property’s market value is to use a comparative sales approach to establish the value range of the property.
Furthermore, these online tools are blunt instruments compared to the precision of a Comparative Market Analysis. Some people will look at the average price per square foot and apply that to their own home when trying to estimate their home’s value. Although price per square foot is a useful tool for analysis of real estate trends, it is a wildly inaccurate tool
14
