Home prices and year-over-year price gains hit another new height nationally as prices continued to rise during a time of year that they usually decline. Pending sales are up from 2019. The fact that the market is so steady continues to be a surprising sign of strength during a time of major economic uncertainty.
How Much Is My Home Worth?
When determining what your home is worth, there are two main types of valuation to consider:
- Fair market value – This is the amount a buyer would actually be willing to pay for your home based on what other properties in the area are selling for. This number is typically determined by recent sales of comparable properties, or “comps,” in your market or neighborhood.
- Appraised value – This is determined by a certified appraiser and is usually authorized by your bank or mortgage company as a prerequisite to getting a mortgage loan or refinance loan. There are many factors that an appraiser may take into account when valuing your home, such as its location and size, its condition, and any upgrades.
Although there are all kinds of websites offering algorithms to make that determination on what your home is worth these websites are unaware of any improvements you may have made to your property and the impact on its value to your property. Also, these websites’ property valuations have been off dramatically in neighborhoods where the housing isn’t uniform. Off by millions in some cases here in Santa Barbara. Where these websites are helpful is with condominiums and townhomes but even then, if you’ve made improvements to your property, it may not be reflected in your online property valuation.
If you’re you’re not sure what your home is worth we can prepare a Comparative Market Analysis for you.
Zillow Zestimate for Montecito Property Off by Millions!
