MARKET ANALYSIS
How Much is Your Home Worth?
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Jessica Adams
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Home valuations give you valuable knowledge that can help you plan for the future and make smart decisions. It’s good practice to stay informed about how much equity you have in your home and how much you may be able to borrow against it or sell it for.
Our tool provides a more robust, accurate assessment than you’ll get from the major real estate portals. For the most precise valuation, reach out to discuss a customized Comparative Market Analysis or an appraisal.
A home valuation determines the current market value of a residential property. It is crucial for real estate transactions, preventing excessive borrowing and financial losses. When getting a mortgage, the home acts as collateral. If the borrower defaults, the lender may sell the property to recover funds. A thorough home valuation safeguards the lender's ability to recover costs if the mortgage is not fully repaid.
The value of your home is calculated using a combination of factors including its location, age, size, condition, any improvements or renovations made, and recent sale prices of comparable homes in the neighborhood. It also factors in current market trends and local market conditions. The valuation tool is dynamic and can be influenced by data such as inventory trends, interest rates, and current buyer sentiment.
Online home valuations provide a good starting point and offer a general estimate of your property’s worth. However, they may not factor in recent renovations, unique features, historical value, architectural significance, and subjective market perception that could impact your home’s actual market value. For the most accurate assessment, consider scheduling an in-person appraisal.
Two Accurate Ways to Perform Home Valuations
MARKET ANALYSIS
A Comparative Market Analysis (CMA) is a tool used by real estate agents to value a home. It evaluates similar homes that have recently sold in the same area. Agents find comparable sales and use them to conduct a sales comparison. In most cases, an agent will find three homes that have recently sold and are as similar to and located as close to the home being valued as possible. Each one is then analyzed to pinpoint differences between it and the home being valued. Once these differences are priced out, the price of each comp is adjusted to see what it would cost if it was identical to the home being valued were it to be sold in the current market.
APPRAISALS
An appraisal is an unbiased valuation of a home based on a professional’s opinion. They are usually what mortgage companies use for home purchases and refinances. A lender usually orders a home appraisal and the cost of the appraisal, sometimes up to $500, is paid by the homeowner. An appraiser does a complete visual inspection of the interior and exterior of the home as well as taking into consideration recent sales of similar properties and market trends. The appraiser then compiles a detailed report on the home, including an exterior building sketch, a street map showing the home and any comparable sales, photos of the home and street, an explanation of how the square footage was calculated, and any other relevant information.
Situations When a Home Valuation May Be Necessary
REFINANCING
Lenders base the amount of their loans on the value of your property and usually allow you to borrow a maximum of 75% to 96.5% against your property. Knowing what your home is worth allows lenders to calculate your equity in the home. The more equity you have, the better terms you will receive on your refinance.
HOME IMPROVEMENTS
If you’re doing home improvement projects to increase the resale value, you want to make sure you’re not pricing it out of the market. If your home is already priced on the high-end for your neighborhood, making too many improvements could make it more difficult to sell. When you get a valuation, you can see how your home compares with others in the neighborhood and let this guide your home improvement decisions.
QUALIFYING FOR CREDIT
If you want to borrow cash against your home, getting a Home Equity Line of Credit (HELOC) could be a good option. To qualify, you must have a certain level of equity in your home. Most lenders require at least 20%. Getting a home valuation will help you determine if you qualify and will be used by the lender to make a decision on your loan.
PLANNING
Though it’s not a necessity, simply knowing the value of your home is good information to have. It will help you plan for the future and deal with unforeseen circumstances when you might be in a position that requires extra money or a quick relocation. Knowing how much equity you have in your home and how much you may be able to borrow against it or sell it for will help you respond to any financial curveballs that life throws at you.
As a top-rated agent specialized in the Miami luxury market, I put my experience and connections to work for you. Fill out your information below and we will personally be in touch to discuss your home selling goals.
"Jessica represented my clients in the sale of multiple units in a condominium building. Her skill and foresight allowed the transaction to be coordinated properly, taking into account existing tenants and time restraints for closing. Her global approach to a real estate transaction along with her organizational skills help ke..."
"Jessica represented my clients in the sale of multiple units in a condominium building. Her skill and foresight allowed the transaction to be coordinated properly, taking into account existing tenants and time restraints for closing. Her global approach to a real estate transaction along with her organizational skills help keep the pitfalls in the transaction down to a minimum. I recommend Jessica without hesitation. She is a qualified and knowledgeable professional."
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"We have been working with Jessica for a few years now and her expertise is bar none. She also goes above and beyond the scope of work of a real estate agent. She is a go getter who understands what her clients want. There have been many off market opportunities that she has brought to us. Thank you so much for your patience a..."
"We have been working with Jessica for a few years now and her expertise is bar none. She also goes above and beyond the scope of work of a real estate agent. She is a go getter who understands what her clients want. There have been many off market opportunities that she has brought to us. Thank you so much for your patience and knowledge Jessica!"
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"We are thrilled to be moving into our new home in the Coral Gables area and are so thankful for Jessica and her team at One Sotheby’s for their persistent and diligent support to make this a reality. We connected with Jessica while in the process of relocating back to the US from overseas and despite the logistical challenges..."
"We are thrilled to be moving into our new home in the Coral Gables area and are so thankful for Jessica and her team at One Sotheby’s for their persistent and diligent support to make this a reality. We connected with Jessica while in the process of relocating back to the US from overseas and despite the logistical challenges of such a move, Jessica made herself available and not only kept us informed with respect to potential homes and the status of the housing market in Miami but also helped us get connected to banks, lawyers and inspectors to make the whole process as fast and as seamless as possible. We have heard many horror stories of how long it has taken others to find their homes in the current market, but that wasn’t the case for us at all thanks to Jessica’s great work. Thank you many times over, Jessica and your team - we are thrilled to become residents of Coral Gables and are so thankful for all your support to make our home purchase happen."
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"I have worked 4 transactions with Jessica Adams from 2015 to the present (2 on the buy side, and 2 on the sale side). We have worked together on transactions from $1,000,000 to over $10,000,000. Regardless of the size of the transaction, Jessica manages each process with the same level of detail, effort, and professionalism n..."
"I have worked 4 transactions with Jessica Adams from 2015 to the present (2 on the buy side, and 2 on the sale side). We have worked together on transactions from $1,000,000 to over $10,000,000. Regardless of the size of the transaction, Jessica manages each process with the same level of detail, effort, and professionalism needed to have success in the ever changing South Florida Real Estate Market. I highly recommend Jessica Adams."
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"Jessica has been our realtor in three separate real estate transactions. She is not only a pleasure to work with on a personal level, but also on a professional level. When in need of suggestions on how to proceed, Jessica is always available with sage advice. She is a consummate professional, efficient, thorough, and knowled..."
"Jessica has been our realtor in three separate real estate transactions. She is not only a pleasure to work with on a personal level, but also on a professional level. When in need of suggestions on how to proceed, Jessica is always available with sage advice. She is a consummate professional, efficient, thorough, and knowledgeable in all aspects of her business. Thank you, Jessica, for all your help!"
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"Jessica is amazing and we recommend her with great confidence. We were new to the Miami real estate market and Jessica patiently helped us learn the neighborhoods and get clear about what we were looking for. She was flexible and available when we needed her. We were living outside of the US while we searched for our home and..."
"Jessica is amazing and we recommend her with great confidence. We were new to the Miami real estate market and Jessica patiently helped us learn the neighborhoods and get clear about what we were looking for. She was flexible and available when we needed her. We were living outside of the US while we searched for our home and she made sure to use our visits to Miami wisely. When COVID happened and supply was limited, she tapped her considerable network and used all of her marketing channels to uncover opportunities that weren't even on the market. Through a lot of hard work and commitment she found us a wonderful home where our family is happily starting our new Miami life. Jessica went far beyond the scope of real estate agent - helping us with everything from introducing us to local parents as we were choosing a school for our children to recommending local vegan restaurants. Most importantly, we enjoyed her company and appreciated her transparency and honesty with us throughout the entire process. Thank you, Jessica!"
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