How To Find a Home’s Value in 2024

by EV Atlanta

Get a comparative market analysis

Reaching out to a local real estate agent who knows your market is another option. Agents can compile a thorough comparative market analysis to arrive at the market value of your home. (Many will do this for free, though some might not offer it unless you retain their services to sell.) They review recent area sales of homes comparable to yours, known as “comps,” and also incorporate their own knowledge of the neighborhood, as well as any factors that are unique to your property.

“A comparative market analysis is a detailed look at the overall landscape of the housing market as it relates to the property being evaluated,” says Blumberg. “It should encompass similar properties to yours that have recently sold, entered into contract and also that are currently on the market. These three different property types are all important to the overall analysis. Each one provides a different insight to achieve the most accurate valuation for your home.”

When reviewing sales data related to other properties, agents will generally look for homes that are of a similar square footage and quality as your home, as well as on a similar lot size and with the same amount of bedrooms and bathrooms. The analysis may also take local market conditions into consideration.

Get a professional home appraisal

A licensed appraiser is another pro who can provide an estimate of your home’s value. Home appraisals are objective, professional assessments that are usually based on an in-person review of your property, as well as an analysis of recent comps and a review of public records.

A home appraisal isn’t free — the average cost is around $350, according to Angi — but it’s likely to be much more accurate than an online estimate. It can also be useful if your home is unique or there aren’t many comps available: “If you don’t live in an area with many recent sales, it may be best to ask an appraiser to come out and give their valuation,” says Sacha Rady, a Realtor with Engel & Völkers in Atlanta.

Understanding fair market value

This is a complicated concept: A home’s fair market value is what prospective buyers would be willing to pay for it on the open market. The amount is based on numerous factors, including a home’s location, size, age and condition.

But it’s also impacted by less tangible things, like seasonality and specific market conditions. For example, the fair market value of the same home may be lower in a buyer’s market, where inventory is plentiful and buyers have numerous options, than it would be in a seller’s market, with more buyers than there is available inventory.

If a market is very competitive, bidding wars can drive market value up higher than expected. “If you have multiple buyers interested in the same home, you may find that the market value is bid up,” says Rady. “This can cause the home’s market value to be higher than its appraised value.”

Fair market value is the price prospective buyers are willing to pay for a home — it’s different from the appraised value, which is based on the opinion of a licensed appraiser, and the assessed value, which is how the local government determines property taxes.