A home holds special memories and a sense of safety for the homeowner and their family. However, one might eventually need to sell the space to move to a new home for various reasons, including expanding their family or needing a place closer to work. In any case, one should understand that when a home is put for sale, it is subject to various housing trends. One must always prepare for various circumstances that could affect the home’s value.

Ways to know the value

Lender appraisal
When a property is on sale, the appraisal is usually conducted once the property has been placed under contract.

The lender usually hires an appraiser who writes a report on the house. This involves getting all the history of the house – when it was made, renovations, and details of any similar real estate deals that have been closed in the recent timeline of six months. Suppose the homeowner has priced the property at $200,000, and the appraiser comes up with a value that is below the mentioned price, then the lender will be willing to pay the appraiser’s value. If the appraiser’s value matches the said number, then there is room for some negotiation between the buyer and the seller.

This is why hiring an appraiser can be helpful while estimating the value of the house because they can come up with a fair value of the property according to the property. While the seller may think that their upgrades and renovations of the house over the years were worth more, fair play by the appraiser may suggest otherwise.

Online home value estimator
The Federal Housing Finance Agency has a House Price Calculator that is used by many to understand the value of their home. All a homeowner has to do is get on to the website and fill in the details asked by the calculator. Some of the required fields include state, available MSAs, purchase quarter, valuation quarter, and purchase price. The calculator then provides an estimate of the home value. It is important to note that the calculator only provides an estimated value and not the actual value of the property. However, it helps to understand the estimated valuation of the property since the purchase, using a basic average principle of how home value changes over time.

Tax assessor
Usually, the property tax paid per year helps to determine the value of the home, so a tax assessor may also be the right person to help evaluate the value of the home. While they can check the sale price of recently sold houses, which is similar to the one assessing the value, they can also look at other factors like any recent home improvements done on the property or if the property is on rent and gives some income and also the cost of the upkeep of this type of a property.

Important things to know about the housing market
Understanding the housing market is crucial since each homeowner has unique needs. For instance, those who wish to sell their house must be aware of its market value. Similarly, those looking to purchase a house should familiarize themselves with the factors that influence the housing market. Moreover, some people invest in real estate for various purposes. Here are a few things to keep in mind about housing market trends.

For buyers
One thing that buyers need to be aware of when house hunting is that keeping a tab on real estate market trends is important. If they notice a year-on-year increase in the prices of the houses, and if the change is 5% or more, then they should know that it’s a competitive market and many buyers are looking for houses.

For investors
Due to the changing trend in job culture where many people are working from home, there was a recognizable change in the way people were buying houses. They were looking for bigger houses with a backyard and even a pool. Investors looking to buy properties for rental income or a fixer-upper should keep these changing trends in mind.

For sellers
Homeowners looking to sell should not generally be bothered about changing market trends universally but should keep a close eye on the local trends restricted to their area code. Getting a professional real estate agent will help in knowing what the current market is like and how it can benefit homeowners in selling their houses.

Ways to increase the value of a home
There are some short-term, mid-term, and long-term tips that can help with the valuation of the home. Things like new landscaping, smart thermostats, refinished cabinets, well-maintained roofs, and new or well-maintained furnaces or air conditioning can add short-term value. A finished basement, bathroom addition, complete kitchen renovation, and garage construction can all add some mid-term valuation. For the long term, the best way suggested by experts to increase the value of the home is to continue to pay off the mortgage and gradually earn equity on the house.