"What is my home worth" is probably the single most popular question asked when someone decides to put their home on the market.
In real estate, finding out how much your home is worth is done through an appraisal, which determines the value of your house in the present day market.
There are several factors taken into
The first is reproduction cost. Essentially, this is when the appraiser evaluates the current condition of your home to determine how much it would cost to reproduce or replicate the home given today's market conditions. Appraisers take many things into account including workmanship and material costs.
The second most common type of appraisal is the sales comparison approach. To come up with the market value of your home, the appraiser will measure the exterior walls to determine square footage of the heated and cooled portions of your home. Homes with a finished area (heated or cooled) in the basement or homes with a second floor will be measured from the inside. Next, the appraiser will take a tour through your home, making note of all the amenities including fireplaces, insulated windows, garages, pools, and porches or decks.
Next, they will find at least three comparable properties in your neighborhood that have sold within the past six to 12 months. Comparable means they are similar in age, size, design, construction quality, and amenities. Rarely do the homes match up perfectly, so the appraiser takes this into account, making adjustments along the way.