How Much Is My Home Worth? [The Ultimate Guide]

How Much Is My Home Worth? [The Ultimate Guide]

by | Aug 22, 2023 | Blogs and Tips

You’ve worked really hard to turn your house into your home, and chances are it’s your most valuable asset. But how do you determine its actual value?

Checking your home’s value isn’t as easy as quickly checking a random stock price, right? It takes a little bit more time, knowledge, and finesse.

Your home makes up a large chunk of your net worth, not to mention it’s a really big deal. You know, I’ve heard that half of Americans actually cry when selling their home, and those may be tears of joy, tears of sadness, or, frankly, tears of stress. You know, I get it because your home is probably one of the most valuable things that you own.

Today we’ll dive into the different types of home value, the different factors that affects your home’s value, and different market conditions you want to pay attention to as well. We’ll also discuss the online home value estimators and much, much more. Our goal is to lay out a roadmap for you to help you determine your home’s value!

1. Types of Home Values

2. How to Determine Your Homes   Value

3. Home Value Estimator 

4. Reach Out to a Professional Realtor

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1. Types of Home Values 

First off, there’s a few different types of values that we can look at. You have the fair market value, you have the appraised value of your property, and the as is value, or the value an investor would give you for your property.

 

Fair Market Value 

Fair market value is what your home would sell for on the open market, giving every buyer a potential to bid on your home. So you can find the buyer willing to pay you the most amount of money.

But in layman’s terms, the fair market value is what the buyer and seller agree the home is worth and agree to sell the home for. This would be done by having a professional Realtor perform a comparative market analysis and an absorption rate. Statistical analysis is the best way to really determine your fair market value for your home.

How Much Is My Home Worth? [The Ultimate Guide]

Your Home Apprasial

 Your appraised value is how much your mortgage lender determines your home’s value to be at. They come to this value by hiring a licensed appraiser appraise your home. The appraiser will actually take a look at your home, take into account the square feet, bedrooms, bathrooms, the location, the updates you have compared to other properties in the area. They put this in an analysis and put it in an appraisal report to help lenders determine your home’s value.

You’ll usually run into this scenario if you’re selling your home on the open market and the buyer that’s buying your home is planning to finance the property. The lender wants an appraiser to give their opinion on the value to make sure they’re not lending $1,000,000 on a home that’s worth $200,000. You will also find this when you are refinancing the property. A lot of the times, the lender will hire an appraiser to go appraise the value and to get a true estimate of your home’s equity.  

How Much Is My Home Worth? [The Ultimate Guide]

As-is Value | Investor’s cash offer

If you’re considering selling to an investor, your home usually needs some work, and the homeowner doesn’t want to do the work. Your home may not be quite move and ready now, so you just want to sell it and be done with the property.

A lot of times, you’re not going to get the most amount of money for the home, but you may be able to avoid some costly repairs that you may need to do to get that fair market value. Investors usually pay anywhere between 60-80% of fair market value for the home.  Are you interested in learning more about the different types of investors? Click Here to view the blog where we dive deep in the different types of cash offers. 

How Much Is My Home Worth? [The Ultimate Guide]

2. How to Determine Your Homes Value

So now that we know the three different types of home values, we’ll go through the steps that you need to take so you know your home’s value. Step number one, you want to make sure you learn the facts about your home in particular, and also the facts about your local housing market.

1. Learn the facts about your home

Believe it or not, your home’s value is not based on what you purchased it for or how great you think your home is. In a nutshell, your home’s value is basically what buyers are willing to pay you for it. So it may be worth a lot more than what you paid for it, or it may be worth a little bit less.

It really comes down to the condition of your home, the features of your home, and the overall market conditions. Here are some of the main factors you’ll want to consider when you’re really trying to determine your home’s value.

          • Location: One of the biggest factors is location, right? Location, location, location. We all know it. Everybody says it. So, is your home located in a good part of town? Is it close to a lot of shops, restaurants, dining? Can you walk to certain places from your home? Is there a certain aspect of your location that adds value or makes your home less desirable? Is your home waterfront? Does it have a golf course view? Are you on a busy road? A lot of these questions will affect your homes value. 
          • Curb Appeal: Does your home really have that wow factor? When buyers pull up, will they be instantly impressed with your home? 
          • Size: You want to pay attention to your homes square feet. How many bedrooms & bathrooms do you have? How big is it compared to some of the other recent sales in the area? 
          • Layout: Do you have an open concept? Is your home a little more congested and closed off? 
          • Stories: How many stories does your home have? The most expensive thing on any home is the roof and the foundation, so it’s cheaper to build up than it is to build out. What this means is when you’re comparing your home to other homes, pay attention to the amount of stories the home has. If your home is a two story home and has 2,500 square feet and you compare your home to a one story home with 2,500 square feet, it could lead to an incorrect valuation. The one story home is much more expensive to build than your two story home is. 
          • Updates/Renovations:  Buyer’s preferences always change, does your home possess the most modern and desired updates? Do you have granite countertops, quartz countertops? Do you have nice hardwood floors throughout? Is your home freshly painted? Does your home possess a more modern color palette?
A lot of things like that will really play into your home’s value and there is frankly a ton of different factors that go into your home’s actual value and buyers weigh them all differently. It’s a little more of an art than a science. Are you interested in learning more about the updates that will maximize your homes value? Click here to learn the 5 updates you can do to MAXIMIZE your homes value.

2.  Learn The Factors Affecting Your LOCAL Housing Market 

Let’s delve into the core elements of the Charlotte housing market that influence your home’s value. While some of these factors are beyond your control, being aware of them can help you make informed decisions.

          • Mortgage Rates: Now a mortgage is a huge financial decision and a higher rate means higher monthly payments. Buyers don’t buy for price point, they buy for payment. So if you see higher mortgage rates, that could actually discourage a lot of buyers from purchasing properties.
          • Seasonal Trends: You also want to consider the time of year. There’s definitely a lot of seasonal trends at play. When you look at the real estate market, statistically, most homes go under contract March, April and May. So you’re going to see a lot more activity then. Now if you get towards the end of the year when school is already in session, maybe November, December, you’re going to see fewer buyers in the market at that time. So that’s something you want to make sure you consider.
          • Supply vs Demand: If you’re looking on the market and you see that there’s a lot of homes currently sitting on the market, that means you got a lot of competition. This could make it harder for you to sell your home.  Now, if you don’t see many homes for sale and the homes on the market are selling quickly, that probably means there’s a lot of buyers and there’s not much to choose from. This has pretty much been the market that we’ve been in for the past few years. If this is the case, you can be more competitive with your price and really push the envelope to get top dollar. A really good way to judge supply versus demand in your market is really take a look at that absorption rate statistical analysis that judges the amount of months inventory currently in your area.

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3.  Look at Similar Homes that Have Recently Sold

When determining your homes value, you want to take a look at some of the recent homes that have sold either in your neighborhood or right in your area.  Please note, location is key. There can be BIG differences from neighborhood to neighborhood. The farther away you get from your home, the worse that comparable property is.

When you take a look at the homes that have recently sold, it gives you a good idea about what buyers have proven they’re willing to pay for homes in the past. You can compare those homes to your house to help you determine how you compare to them. 

I know there’s a lot of things to take into account when you’re trying to determine your home’s value, but a quick online search going to some of the national websites out there can help you find some recent solds near you.

Reaching out to a trusted Realtor is a great way to streamline the process and really help you determine your home’s value. Realtors have access to much better data sets and can help find and determine the best comparable properties, to ensure that you can get top dollar for your home.  

Mortgage rates

3.  Home Value Estimator 

Another great place to start is to get a free online home value estimate or get an AVM, which means Automated Value Model. If you put your address in Google, a lot of different websites will pop up such as Zillow and Redfin.

You can go on those websites and it’ll give you a lot of facts about your home like the square feet, beds, baths, what you bought it for, and what the previous owner bought it for. All that data is public record. It’ll also give you a rough estimate of your home’s value. Now, a lot of times that value is pretty inaccurate. If you have any questions about the Zillow’s estimate and how accurate it actually is, we shot a video diving deep into that very question. Feel free to check it out below:

There are a lot of AVMs out there and not all of them are created equal. So there are some that are a lot more accurate than others. So if you do want to make sure you follow your home’s value like a pro, we actually have a very accurate AVM model that we offer to all of our clients, friends and neighbors. You can sign up below: 

Our tool is completely free. It’s just a service to help you stay up to date on your home’s value. It gives you monthly reports, and it’s actually powered by CoreLogic, so you know it has the most up to date information available. It pulls tons of different data and resources like market conditions and recent sales in your area to give you an automated value so you can track it month to month.

Our system can also keep you up to date on your home’s equity position based on the estimated price. It’s a great way to really stay in touch with how much money you’re sitting on your home and also track your net worth.

There’s a lot that you can actually do to utilize your equity to build wealth. And if you have any questions or want to know more about that, I shot a video diving deep into that with my buddy and lender, Adam Kelly. Feel Free to check that video out below: 

Those are things that will help you determine how you fit in the market. This is all really great data and information that you can give to your Realtor. When you meet with your Realtor you will discuss your home selling goals and what’s the optimal price that you want to put your home on the market for.

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4. Reach Out to a Professional Realtor

The most accurate way to determine your home’s value is to reach out to a professional Realtor you trust in your local market. Realtors have access to better databases, and can look at your home’s nitty gritty details and compare to the most accurate recent sales and current listings and frankly, no algorithm can do that.

A good Realtor will personally come out and take a look at your home. They will take into account the landscaping, the condition of your home, the layout, and the upgrades that you have spent time and money putting into your property as well.

They’ll also take a look at the local market conditions to really help you determine the best price range so you can maximize your profit. One thing you definitely do not want to do is you don’t want to overprice your home. You definitely don’t want to underprice your home either. There’s definitely a sweet spot that’ll help you maximize your value without putting you in a bad position to lose money.

The true value of your home is not based on a formula. It’s based on what a buyer is willing to pay for your home. There’s a lot of factors to consider when you’re trying to determine the best price point, and these four steps will be your roadmap and your guide to help you find the optimal price point to make sure your home sells as quickly as possible for as much money as possible, while making the process easy as well.

.

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Mecklenburg County Property Tax Revaluation: Tax Relief Options

Mecklenburg County Property Tax Revaluation: Tax Relief Options

by | Apr 4, 2023 | Home Ownership Education, Uncategorized

Recently, Mecklenburg County announced its property tax revaluation, a process that occurs every eight years to ensure that property values are up-to-date and fair. The revaluation process, which began in 2021, determines the assessed value of every property in the county based on a variety of factors, including recent sales, property improvements, and other market trends.

As a result of the revaluation, some property owners in Mecklenburg County may experience an increase in their property taxes. The county government has taken steps to make this process as transparent as possible, providing property owners with information on how their assessments were calculated and offering opportunities for appeals.

 

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However, for those who may experience an increase in their property taxes, the county has also introduced several tax relief options to help alleviate the financial burden. These include property tax exemptions for seniors, the disabled, and veterans, as well as programs that provide assistance to those who are struggling to pay their property taxes. Please see below for a list of the different tax relief options:

 

Mecklenburg County Property Tax Relief Resource

Elderly and disabled residents can receive up to $25,000 or 50%, whichever is greater, off their taxes. Those interested can apply between January and June each year by calling 980-314-4226.

Elderly and disabled tax relief requirements include:

  • The applicant’s name must be on the deed or title to the property.
  • The property must be the applicant’s primary residence.
  • The applicant must live in North Carolina.
  • The applicant must be at least 65 or have a disability that “substantially hinders a person from obtaining gainful employment.”

  • If claiming a disability, the applicant must provide proof of the disability from a North Carolina physician or a government agency.

  • The applicant’s household income must be below $31,900, based on 2021 income. The Mecklenburg Board of County Commissioners is working to make this income restriction higher so more people can qualify, Joyner said.

Disabled veterans in North Carolina can receive up to $45,000 off their property taxes. Those interested in applying must fill out a form on milvets.nc.gov.

Disabled Veterans Homestead Exemption requirements include:

  • The deed or title must be in the applicant’s name as of Jan. 1.
  • The applicant must live in North Carolina

  • The applicant must be a disabled, honorably discharged veteran or receive benefits for specially adapted housing under 38 U.S. Code 2101.

 

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The Helping Out Mecklenburg County homeowners with Economic Support (HOMES) program helps low to moderate-income homeowners get up to $340 off their property tax bill. Those interested can apply at mecknc.gov/4Homes.

HOMES program requirements include:

  • The applicant’s name must be on the deed, title or on a life estate of the property. A life estate is a legal way to pass the ownership rights of your home to another person after death.
  • The property must be in Mecklenburg County.
  • The property must be the applicant’s primary residence at the time of application and consistently for the past three years.
  • The applicant’s household must make less than 80% of Mecklenburg County’s area median income, or less than $67,000 for a family of four according to data from local affordable housing developer DreamKey Partners.

    Certainly, it is vital for property owners to stay updated with the property tax revaluation process in Mecklenburg County. The county’s tax relief options, such as property tax exemptions, assistance programs, and deferral programs, provide crucial support for homeowners who may face financial challenges. By taking advantage of these resources and staying informed about the property tax revaluation process, property owners can make informed decisions about their properties and finances. Overall, this process ensures that property values are fair and transparent, benefiting the community as a whole.

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    Is That Fixer Upper A Dream Home or A Money Pit? 5 Major Warning Signs to Help You Find Out

    Is That Fixer Upper A Dream Home or A Money Pit? 5 Major Warning Signs to Help You Find Out

    by | Nov 21, 2022 | Home Ownership Education, Home Sellers and Buyers, Moving to Charlotte NC, Selling My House

    So, you have finally found your dream house after what could be weeks or months of searching. It is an old house that needs a little work — okay, maybe a lot of work — but its character and charm are exactly what you are dreaming of in a home.

    Fixer-uppers are appealing, especially if you think there is potential in a property. Bonus if you are an HGTV fan. It also seems like a great idea if you want to save money on your home purchase. Likewise, the opportunity to put personalized touches and let your creativity show in the home can be exciting.

    The problem starts when you realize that not all fixer-uppers are equal and worthwhile. And if you are not careful, that fixer-upper might turn out to be a money pit that could transform your dream project into an expensive nightmare.

    A fixer-upper VS a money pit: How to tell

    Generally speaking, a fixer-upper is a house that is structurally sound and should only need general maintenance and cosmetic repairs. The biggest thing to remember when purchasing a fixer-upper is to look beyond the surface. A money pit, on the other hand, has many major flaws and expensive issues that require extensive professional assistance to make it more livable. As long as the general systems of a home are in good shape, your budget is best allocated to refreshing the property instead of repairing it.

    If the fixer-upper you are looking to purchase is plagued with even one or more of these huge deal-breakers, it’s time to consider running the other way.

    The bones or foundation that supports the entire house and what is holding it together. Without a solid foundation, it is impossible to have a structurally sound home. Serious issues with the structure are a large, expensive, and time-consuming undertaking to fix that could potentially turn your deal into an ordeal.

    Therefore, it is probably the most important thing to look at when hunting for a worthwhile fixer-upper. Keep an eye out not only for large cracks, but also for bowing walls, shifting masonry, uneven floors, and even moisture in the basement or crawl space when viewing a home. Better still, bring in a structural engineer or a foundation repair professional to inspect the foundation very carefully. If there’s anything questionable about the structural integrity of the house, the expense involved in repairing the home may end up being more than you’re willing to spend.

    Water is meant to be confined within the building structure, such as pipes and plumbing. When it runs unabated in crawl spaces, basements, floors, or walls, it can cause significant water damage, which is disastrous, and a giant red flag. Moisture can damage a home visibly by warping the walls. Even a slow leak will rot out drywall, and could eventually weaken structural elements such as joists and beams.

    Worst is, mold can thrive, which can cause serious health implications and be costly to remediate. Be aware of any damp smell, scour the ceilings for signs of leaks, and check every inch of the basement and foundation for cracks or water.

    Another simple point to remember, if the mechanical systems of a home, including plumbing, electrical system, and heating, need a complete overhaul, you might want to think twice before taking that fixer-upper. These can all be expensive to update and have finite lifespans. Plus, outdated electrical systems can be extremely hazardous and cause electrocution or fire hazards. The value of fixing those problems will far outweigh the good, potentially leaving you out of pocket.

    Many fixer-uppers might need at least some level of roof repairs, such as replacing some cracked, or missing shingles. But if the roof is already sagging, there are multiple layers of shingles, or the shingles are dry, cracked, and brittle, and you find evidence of major leaks on the ceilings, then it’s a different matter. A complete roof replacement can cost you thousands of dollars, so you must know the age of the roof before buying.

    Not to mention, severe damage to the roof could also cause a myriad of issues, such as damage to the sheathing, trusses, beams, and rafters, resulting in water damage, mold, or structural issues, from wood rot. Unfortunately, none of these repairs are cheap.

    Lastly, be diligent with pests that can eat away at your house and budget. Especially if there is termite damage, or worse, an active case of termites, treating the home can be incredibly costly. The structural damage these wood-boring insects cause can be more problematic because it is not always visible. When checking a fixer-upper or any home, look carefully for signs of an infestation, including crumbling, damaged wood, buckling wooden or laminate floors, mounds of termite pellets, mud tubes climbing foundation walls, or discolored or drooping drywall.

    If you suspect a termite infestation, make sure to enlist the help of professionals such as exterminators and structural engineers to help you understand the full extent of the damage. Catching the damage early, could mean you’ll only need to cover the cost of extermination/treatment. However, finding it late should be your cue to look for a more worthwhile fixer-upper.

     

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    The Top Five Reasons Why a Home Does Not Sell

    The Top Five Reasons Why a Home Does Not Sell

    by | Nov 9, 2022 | Selling My House

     

    If you’re thinking of selling your home, it’s important to be aware of the common mistakes that can cause a home to not sell. By avoiding these pitfalls, you can increase your chances of a quick and successful sale.

    1. Pricing it too high
    This is the number one reason why homes don’t sell. Oftentimes, sellers have an emotional attachment to their home and mistakenly price it higher than what the market will bear. It’s important to work with a real estate agent who can help you price your home based on recent comparable sales in your area.

    2. Poor curb appeal
    First impressions are important, and potential buyers will often make a judgement about your home before they even step inside. Be sure to spruce up your landscaping, pressure wash the exterior, and touch up any paint that is starting to fade. These simple steps can make a big difference in how quickly your home sells.

    3. Savvy buyers know what they want—and they want a deal
    In today’s market, buyers are looking for value. They want to find a home that has all the features they’re looking for without paying more than necessary. As a seller, it’s important to be aware of the competition in your area and price your home accordingly.

    4. Not staging the interior properly
    Staging can make a big difference in how quickly your home sells. By removing personal items and clutter, and arranging furniture in a way that highlights the best features of each room, you can make your home more appealing to potential buyers.

    5. Not being flexible with showings
    If you’re not flexible with showings, you could be missing out on potential buyers—especially if you live in an area with a lot of foot traffic. It’s important to be available for showings during daylight hours so potential buyers can see your home at its best.

    Selling a home can be tricky business—but by avoiding these common mistakes, you can increase your chances of success. Pricing your home correctly, improving curb appeal, staging the interior, and being flexible with showings are all key factors in selling your home quickly and for top dollar. So if you’re thinking of putting your house on the market, keep these things in mind and you’ll be one step closer to successfully selling your biggest investment.

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    🔻CONTACT INFO🔻
    🏠 WANT TO TALK REAL ESTATE? Fill out this contact form here https://thefinigangroup.com/contact-us/
    🏠 SEARCH FOR HOMES FOR SALE IN THE GREATER CHARLOTTE AREA AT t https://www.ChooseCharlotteHomes.com
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    ✔️ CHECK ME OUT ON GOOGLE https://g.page/TheFiniganGroup?share

    Josh Finigan
    The Finigan Group
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    The Big Question: Should You Move or Renovate?

    The Big Question: Should You Move or Renovate?

    by | Oct 18, 2021 | Home Sellers and Buyers

    The last 18 months changed what many buyers are looking for in a home. Recently, the American Institute of Architects released their AIA Home Design Trends Survey results for Q3 2021. The survey reveals the following:

    • 70% of respondents want more outdoor living space
    • 69% of respondents want a home office (48% wanted multiple offices)
    • 46% of respondents want a multi-function room/flexible space
    • 42% of respondents want an au pair/in-law suite
    • 39% of respondents want an exercise room/yoga space

    If you’re a homeowner who wants to add any of the above, you have two options: renovate your current house or buy a home that already has the spaces you desire. The decision you make could be determined by factors like:

    1. A possible desire to relocate
    2. The difference in the cost of a renovation versus a purchase
    3. Finding an existing home or designing a new home that has exactly what you want (versus trying to restructure the layout of your current house)

    In either case, you’ll need access to capital: the funds for the renovation or the down payment your next home would require. The great news is that the money you need probably already exists in your current home in the form of equity.

    Home Equity Is Skyrocketing

    The record-setting increases in home prices over the last two years dramatically improved homeowners’ equity. The graph below uses data from CoreLogic to show the average home equity gain in the first quarter of the last nine years:

    home equity

    Odeta Kushi, Deputy Chief Economist at First American, quantifies the amount of equity homeowners gained recently:

    “Remember U.S. households own nearly $35 trillion in owner-occupied real estate, just over $11 trillion in debt, and the remaining ~$24 trillion in equity. In inflation adjusted terms, homeowners in Q2 had an average of $280,000 in equity- a historic high.”

    As a homeowner, the money you need to purchase the perfect home or renovate your current house may be right at your fingertips. However, waiting to make your decision may increase the cost of tapping that equity.

    If you decide to renovate, you’ll need to refinance (or take out an equity loan) to access the equity. If you decide to move instead and use your equity as a down payment, you’ll still need to mortgage the remaining difference between the down payment and the cost of your next home.

    Mortgage rates are forecast to increase over the next year. Waiting to leverage your equity will probably mean you’ll pay more to do so. According to the latest data from the Federal Housing Finance Agency (FHFA), almost 57% of current mortgage holders have a mortgage rate of 4% or below. If you’re one of those homeowners, you can keep your mortgage rate under 4% by doing it now. If you’re one of the 43% of homeowners with a mortgage rate over 4%, you may be able to do a cash-out refinance or buy a more expensive home without significantly increasing your monthly payment.

    First Step: Determine the Amount of Equity in Your Home

    If you’re ready to either redesign your current house or find an existing or newly constructed home that has everything you want, the first thing you need to do is determine how much equity you have in your current home. To do that, you’ll need two things:

    1. The current mortgage balance on your home
    2. The current value of your home

    You can probably find the mortgage balance on your monthly mortgage statement. To find the current market value of your house, you can pay several hundreds of dollars for an appraisal, or you can contact a local real estate professional who will be able to present to you, at no charge, a professional equity assessment report.

    Bottom Line

    If the past 18 months have refocused your thoughts on what you want from your house, now may be the time to either renovate or make a move to the perfect home.