Calculating Home Value Estimates

Value by Computer

Online home valuations use recent sales of similar properties in the same neighborhood. Those automated values can be useful to get a general idea of value.

Value by Human

For an expert opinion of value, a top Bakersfield Realtor will review recent comparable sales and make value adjustments for differing property characteristics.

FAQs

What is the definition of “home value”?

Simply put, a home's true value is the amount a buyer is willing to pay the seller. Easy enough, right? However, the home must be exposed to an open and competitive market, without duress, and where all relevant facts are known. So a foreclosure sale or a sale to a family member is typically not a good representation of a home's fair market value.

How is a home value calculated?

A home value estimate is most commonly generated by:

An online automated valuation model (AVM).
Hiring an appraiser.
Asking a Realtor to provide a comparative market analysis (CMA).

What are the valuation types?

1. An automated valuation model, also known as an AVM, pulls data from publicly available sales records, from which an algorithm generates a real-time valuation.

2. An appraiser will produce a report where property characteristics are physically verified and detailed adjustments are made to comparable sales. Appraisers are not typically used for anything other than lending or legal purposes.

3. Similar to an appraiser, a Realtor® will inspect the home and analyze comparable sales. Local Realtors® are often the best resource since their estimates are free and they should have a firm handle on the neighborhood, the market, and demand for certain home characteristics.

What are the valuation methods?

The most common and accurate method of determining home value involves an analysis of recent comparable sales ("comps").

1. Comps are chosen that are most similar in size, age, and condition.

2. Value adjustments are made for any differences in size, quality, and amenities.

3. Those adjusted values are averaged to derive an overall value.

Adjustments and averages may not be necessary if one or more comps are very similar to the home being valued.

Is PropertyWonk special?

Yes! Without any obligation from you, we have a highly experienced Bakersfield Realtor provide a custom home value estimate based on the most applicable comparable sales in your neighborhood. The actual value can vary depending your home's condition and special amenities. A Realtor can derive an even more precise value if and when you decide to sell your home.

When should I check my home's value?

Checking your home’s value on a regular basis can be very helpful. If you are thinking about selling your home, checking your home’s value provides a potential listing price. It's also a good idea to check your home’s value when you’re considering upgrades or renovations to your property. And, of course, it's always good to know what your net worth looks like!

What’s next after I receive my estimate?

If you're ready for a personal touch, we can connect you with a top Bakersfield Realtor® to perform a comparative market analysis (CMA) and discuss your goals.