Home Evaluations

Evaluating your home can be a daunting task if you are unfamiliar with home evaluation terms and methods. Homeowners often find it difficult to separate the value they place on their home and the value a potential buyer might place on the home. Home evaluation has two dimensions: a tangible side (how large is the home, and in what condition is the home); and a more intangible side (how the market is currently performing). A current home evaluation could be necessary in order to place your home on the market, or even to obtain financing for a second mortgage or for home improvements. To take a further look at evaluating your home, there are several questions that should be answered.

What condition is my home in? The first step in determining the current value of your home is to take an objective look around. Take a pad and paper and look closely at your home from top to bottom, noting anything that needs repair or replacement. Be careful to note the status of any built-in appliances. Then take a look around the neighborhood. Has your neighborhood improved or declined since you purchased your home? Do you have the most expensive or least expensive home in the neighborhood? How much does it cost to run utilities in an average month? These are important factors - remember: your home has no value whatsoever if no one will buy it!

What price has been placed on comparable homes in the vicinity in the last several months? The housing market changes every few months, so it is imperative that recent activity is noted when determining the value of your home. This information has a direct impact on your home evaluation. It is also important to note vicinity - a similarly-sized home in another part of town might carry a significantly different value than your home. Take note of any homes in the area that are currently on the market. What is their listed price, and how long have they been on the market? If another comparable home on your block has listed a price lower than you would consider, you may have competition on your hands.

Another thought that comes to mind when considering home evaluation is the possibility of staying in your home. If you are undecided about whether to stay or to sell, consider these questions: have my needs or my family's needs changed since purchasing this house? Have my lifestyle and convenience needs changed? Would I be more comfortable in this home if I choose to stay and remodel, or is that even an option?

When considering the time that will be required to determine all these factors, it is easy to be discouraged by home evaluation. Now may be the time to call in a professional. While a home inspector can be found in the yellow pages, a call to your mortgage holder will give you the name and telephone number of the person who performed the last inspection on your home. They will simply need to add some details and make a visit to determine the current condition of your home to update your home evaluation. This professional is also aware of the current market conditions as well as activity in the area, so you will not have to do this research on your own. A professional home evaluation will cost anywhere from $100 to $500, depending on your area.