Getting Your Homes Accurate Value - Part 2
Part 1 of Getting Your Homes Accurate Value
This is part two of a two part article on Home Valuations. If you have not read Part 1 -- we strongly recommend that you click this link to get caught up Getting Your Homes Accurate Value. In the previous article, we discussed how websites such as Zillow create home valuations and touched on some of the challenges of using an AVM (Automated Valuation Model) for getting your home’s value. In this article, we will cover how appraisals are done and some of your other valuation options.
Who Has The Real Estate Data?
As we discussed in the previous article, the local MLS (Multiple Listing Service) is by far the most accurate resource when looking at what homes are currently for sale and the details of the recently sold homes. This is the same exact information that appraisers use when they value a home. In some rare instances, appraisers (and real estate agents alike) may use some Clerk of Court records if they need to – but as we discussed in the previous article, the Clerk of Court generally have very limited data and requires that the appraiser do additional work to (such as call the seller) to get some of the more pertinent data points such as number of bedrooms, number of bathrooms, square footage of the living area and so on. At the end of the day, its impossible to get a Your Home’s Value without access to the MLS.
How Appraisals Work
There are multiple types of home valuations. As we have covered, there are AVMs (Automated Valuation Models)...
It has become common today to get a home valuation on the internet. As a matter of fact, one of the driving factors behind the success of Zillow has been their customized home valuation which they have labeled as the Zestimate. Thousands of people every day put in their homes address and receive an automated opinion of value…but are Zillow's home valuations accurate?
AVMs – Automated Valuation Models
Anytime you have a computer figure out your home’s value, that is called an AVM or Automated Valuation Model. The first two words in AVM are very logical, the one that you should be paying attention to is the “model”. The way an AVMs automatically generates a valuation for your property is using an algorithm. An algorithm (for this discussion) is a set of data points that are weighed by a computer to give an educated “guess” at an outcome. There are thousands of different AVM’s on the market today, used by a variety of industries.
We have already discussed Zillows AVM, but many banks either have built or subscribe to others too. Core Logic has a very popular AVM as does RPR. These Automated Valuation Models are leased to banks, insurance companies, mortgage companies, financial institutions, investment firms and just about anyone willing to pay for them. Mortgage companies for example, may use an AVM if you are refinancing your home...
Relocating To Texas
Why Move To Texas? Here are 10 Reasons to Relocate to Texas
Texas is a great location to buy a home and this fact can be attested to by anyone who has been there. It has also become one of the many great places to relocate to for a good number of reasons. It is a low cost state as well as one of the 10 best places listed to live and work in America. Listed below are 10 reasons to choose Texas when considering relocation.
1. Texas has an excellent real estate market consistently has increased in value. Home owners have made amazing returns on their home investments with the value of the homes on the rise. This makes Texas a natural market for real estate investors to make solid returns on their real estate investments. You can search all real estate listings by all real estate brokers using Elevate Realty Group's Real Estate Search
2. Texas, has no personal income tax. Very few states in America, like Tennessee, have no personal income tax. This lets you get to save more of the money you earn and lets your dollar go further. It’s a great place to live and work.
3. What makes Texas a really interesting place is its central location in the South. It is also located within a day’s drive of 50% of the U.S. population.
4. There’s an abundance of live theatre and cultural events that tells a lot about the history and culture of Texas. It is home to a huge local arts scene; as a result, there is no room for boredom in Texas as there are lots of things to be done and seen.
5. Homes in Texas generally are better priced and more affordable than homes in other cities. In additon, Texas homes have seen substantial increases in value that outpace the country.
6. The natural landscape...
The Advantages Of Buying a Home vs Renting
A lot of people have been paying rent their entire lives, but are willing to take the step in acquiring their own home. Homeownership has many benifits but there are important factors to take into consideration before making such a decision.
The advantages of buying a home
In some instances, the thought of becoming a new home owner can be overwhelming. Homeownership can be a very rewarding thing financially as well as for your personal state of well being. The benefits of becoming a home owner are as follows:
The Payment of mortgage builds equity
We’ve probably heard that paying rent is a wasted expense that never supports our financial wellness. We pay rent to the home owner as an exchange for the use of their house or appartment. You do not have total control over the property. However, when you purchase a new home, your mortgage payment is put towards principal and interest in the form of a home mortgage. The princible paid on your home is the portion of the payment that directly reduces what you owe. Your equity is what is gained as the principle gets paid down and is considered an asset. Once you have paid your mortgage over the term of the loan, the property is 100% yours with full ownership. The interest, on the other hand, is the money that you pay for the financing of the home. Although these funds don’t get applied to paying down your mortgage, they are tax deductible and can substantially decrease your year end taxes.
Full Right To Make Any Improvement
In paying rent, any improvement on the home belongs to the owner. You only enjoy them while you continue to rent. But as the owner of your house, all the benefits of the improvements you make belong to you and can potentially increase your homes value.