Home Value Estimates in Tennessee

Introduction

Home value is the estimate of how much it is worth. It is slightly different from the home price. The price of a home depends on the bargaining skills of the seller and the buyer and the incentives made to make the deal more appealing. The common method of determining home value is by sales history of similar properties with equal size and the same amenities in comparable environs. Assessors and appraisers use a year or 6 months of sales figures for similar properties.

Appraisers might also estimate the home value using income analysis or cost. The cost method calculates the home value by determining what it would cost to build an identical home at the current prices. Assessors use income analysis to figure the value of a home by calculating the amount of money it generates if it is rented out.

History

Tennessee has a long history in the real estate market as it was the 16th state to be admitted to the union in 1796. It is now an industrial state where most people live in the urban areas thus increasing home value due to high demand.

Property value is important as it has been the basis for assessing the property taxes. Lenders base home loans and mortgages on home value estimates.

Features

Home value estimates are an approximation. The precise value is hard to ascertain as the worth of a home is affected by different factors both within and out of real estate limits.

Factors like the age and the condition of a house affect the true value of a home. Renovations and improvements play a large part in improving the value of a home.

Home value estimates are important to various groups of people who use them to serve their needs. The groups of people who are interested in knowing the value of a home are:

1. Developers who are interested in expanding their business to the area
2. House owners who are interested in selling or trading up their homes for other homes
3. Prospective buyers who are not sure whether it is viable to buy a particular homes to compare them with prices of other similar homes
4. Developers who want to determine the potential of nearby building sites and how they impact home prices.
5. Builders who use the value to come up with a cost of providing certain amenities.
6. Owners who want to determine if it is viable to remodel the home and whether remodeling would improve the value.
7. Local governments and association who want to determine how certain policies would impact on the neighborhood homes value.

You can use any one of these methods to carry out home value estimates.

1) Use Government resources

You can use the Tennessee federal housing office enterprise oversight website. You will find a home value calculator. You will be requested to enter the relevant figures in appropriate fields. The calculator presents the estimate home value at the time. The calculator can also show the home value estimate at any time in the past up to present time.

2) Hire the services of a realtor

Find a real estate agent who knows the area around the home well. Real estate agents are willing to help home owners with value estimates as they want to market themselves incase a home decides to sell it.

3) Use internet home value estimate sites

Most of home value websites are free. They use past sales data to estimate value of the property. You are supposed to supply the address and basic information about the home. The estimate is provided within seconds.

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