Atlanta, Georgia is considered by many the heart of the South. It is a bustling city that grows every year. It has the world’s busiest airport, some of the most diverse communities in the U.S., and an impressive amount of wealth and opportunity. The city can hardly contain so many amazing things, and they spill into the surrounding areas. This has been driving up market values across the board.
Cumming real estate in Georgia has always been fantastic, with beautiful Lake Lanier to the west and booming Atlanta to the south. The value of new homes in Cumming continues to increase thanks to the spillage of opportunity from Atlanta. As a suburb of the big city, Cumming is ideal for commuters and people who want access to city life without the hassle of the city in their front yard. Naturally, if new homes have increased in value, established estates and mansions increase also. So, how can you determine the value of your property?
Online valuation tools
The easiest and most time-efficient way to estimate your property value is by using an online tool. Services, such as Redfin and Realtor.com, are quick and readily available without purchase. You only need a tablet, computer, or smartphone, and you can estimate the rough value. To be clear, they only provide the rough value and should not be considered a professional and viable number. Here’s how they work.
These websites use tools called automated valuation models–AMVs for short–that use algorithms and publicly accessible data from their website and other sources like recent sales and other field estimates to generate a rough guess at a home’s value. This is great to get a quick starting point, but take it with a grain of salt. Some of the data used could be extraneous, irrelevant, or outdated. It would not consider any nuances to your home, such as your recent kitchen renovation or the row of cherry blossom and ginkgo trees you planted in the front yard.
If you are looking to capitalize on the recent market highs, want your renovations included in the valuation, or need something more exacting, some of the other options here might be better suited to your needs.
FHFA house price index calculator
The Federal Housing Finance Agency uses a tool called the house price index (HPI) calculator for calculating the value of homes. This is still a rough estimate; however, it is generally more accurate than a typical AVM. This is because it has a more scientific approach. While AVMs have come a long way, they still pull information that may be irrelevant or outdated without considering essential data.
The FHFA’s house price index (HPI) calculator uses historical mortgage data from a variety of properties in the area over a period of time to factor out an estimation of your property’s value. It also uses the mortgage data from your home’s previous exchanges to estimate more accurately. However, it still has its issues.
The HPI calculator is still a lagging indicator of value. It will not necessarily utilize information on recent changes and additions you have made to a home. It does not account for inflation, and the human factor is not included either. Traffic noise, curb appeal, or individual needs can make the estimate less accurate. Getting a real person on the ground and looking at your home will always have better results.
A certified property appraiser
Homeowners can hire an appraiser at any time to get any estimate, from a previous price to the current market value. This is likely the most expensive of the options available to you, but it will be the most accurate based on the facts of your Cumming real estate. Appraisers are certified by the state and have the most comprehensive property analysis.
Appraisers will consider many factors in their analysis. They look at the condition of the home and the neighborhood it is in. Other elements that play a role are whether a home looks old or modern and if there is a lot of privacy or traffic around the area. They then look at the current market and utilize comparable properties that have recently sold. These and other factors generate an accurate estimation of your property’s value. It is important enough that mortgage lenders often require a third-party appraisal before they approve financing.
A licensed realtor
Naturally, a licensed realtor is an excellent option for receiving a reasonably accurate price estimate on your property. Much like an appraiser, a real estate agent will have a comprehensive approach that factors in recent changes and the human element of real estate. Meaning that you could sell your home for more or less than what it appraised at. Real estate agents often offer a free comparative market analysis (CMA) to help home sellers choose the best listing price when selling their homes.
Agents use the current market and recent data on similar properties, as well as their professional network, to generate a CMA of your property. This allows them to consider recent changes to a home as well. Because their estimate is based on their experience, it can be subjective. However, an agent will have invaluable insight into how you may increase the value of your property. This is particularly valuable if you are looking to sell the property soon and want to generate a significant boost in value beforehand.
If you are thinking of selling
Gretchen Evans has worked in real estate for more than 20 years and has helped hundreds of clients find their ideal home. She is pleasant and friendly with a kind demeanor. She likes to keep her relationships with clients open and honest, leading to many long-term clients who consider her a friend. Gretchen Evans, Matt Tuck, and the Happy Homes Team use their 10-point process to close deals stress-free. Contact The Happy Homes Team today if you would like a competitive market analysis
