As we mentioned, the interest rate on 30-year fixed rate mortgages (“FRMs”) is approaching 4%, which is good news for sellers and buyers alike. If you have considered selling your house recently, then you have also wondered how much your house is worth. While there is no “housing value Ms. Cleo” to rely on, there are certain methods of “reading the tea leaves” to create a rough approximation of your home’s value. This article will discuss those methods, you will not need a crystal ball for this.
(1) Predicting the Future is Not Easy, Don’t Let Anyone Tell You Differently
Most people want to know two things when guessing about the value of their home: the value of their home now, and the value of their home in the future. The value of your home now is not a major challenge, it’s the predictions that become troublesome. As a general, but conservative, rule your home will appreciate at approximately 3% per year.
(2) The Past is the Best Predictor of the Future
If you aren’t interested in computing the value of your house based on 3% interest (see what we did there?), the Federal Housing Finance Agency has a calculator for purposes of assessing the Housing Price Index in relation to your home. This website shows you market trends from the previous year, which allow you to extrapolate the future value of your home.
Ultimately, if you want the most accurate snapshot of your home’s future value, it is best to contact a skilled agent who is familiar with the market trends in a given locale. As we have noted, a skilled real estate team has a strong understanding of the real estate market in general, but an intimate knowledge with the specific market they cater to. The Chernov Team specializes in the Encino, Sherman Oaks, and Studio City areas, and have an in depth understanding of market fluctuations for those areas.
At the Chernov Team we understand that knowledge is power, and one of the most useful pieces of information relates to the actual value of a property you are trying to sell. At the Chernov Team we know that whoever comes to the table most prepared leaves with the most, and the Chernov Team always leaves the table with the most.