How to find the assessed value of your home

How to find the value of a home

There are many resources homeowners can use to find out property values.

1. Use online tools to calculate the value of your home

You can use a home value estimator tool to learn the value of your house. These digital tools use your address to look up data from comparable homes in your area. They will sometimes ask you specific questions about your home’s features or recent renovations to estimate its worth.

2. Get a comparative market analysis

Real estate agents can provide you with a comparative market analysis. This is their estimation of your home’s value based on an evaluation of your property and market trends. This is commonly done before listing a home for sale.

3. Use a house price index calculator

The house price index (HPI) calculator uses data from mortgage transactions over time to estimate the value of a specific house. This value is projected based on the purchase price of the home and the changing value of other homes in the area.

4. Hire a professional appraiser

You can hire a professional appraiser to assess the appraised value of your house. This appraised value can be used to list the house at an accurate price, refinance your mortgage, or determine the potential financial impact of a remodel on your home equity.

5. Evaluate comparable properties

If you don’t want to pay an appraiser yet, you can research comparable properties in your area to estimate the fair market value of a home. Browse sites with MLS listings to find prices for homes like yours. While researching, consider square footage, age, condition, outdoor space, amenities, and the number of bedrooms and bathrooms.

How to calculate your home’s assessed value

If you are wondering what the value of your home is and want to calculate the assessed value, you need the property’s market value and assessment rate. Then you can use this equation:

Assessed value = (Market value x Assessment rate) / 100

If the market value of your home is $400,000 and the assessment rate is 80%, the assessed value is $320,000.

You can also use your property tax bill and the real-estate tax rate of your county to calculate the assessed value of your home with this equation:

Assessed value = (Property tax bill x Tax rate) ✕ 100

If your property tax bill is $3,400 and your county’s department of finance tells you the real-estate tax rate is 1%, you can see that your assessed value is $340,000.

Benefits of knowing your home’s value

Knowing the value of a home can help homeowners plan their finances more accurately. 

If you bought a home for $200,000 and its true market value is now $350,000, your equity has likely increased. You can potentially use this equity to secure a home equity loan, and use it to buy a second home, fund a renovation project or consolidate debt. Use the loan amount calculator from Discover Home Loans to see how much money you might be able to borrow with a home equity loan.

You can also use the new value of your home to calculate cash-out refinancing options. With a cash-out refinance, you can rewrite your mortgage loan for a larger amount and take that amount in cash. Use the cash-out refinance calculator from Discover Home Loans to input the current market value of your own and learn more about your options.

Comparing assessed, appraised, and fair market values

While your home’s assessed value, appraised value, and fair market value may be used interchangeably to evaluate how much your property is worth, they are created by different types of professionals and have different uses.

Here’s how to understand the differences between these home value types: