Last updated: June 16, 2025

Home Ownership

What is your house worth?

Father spending time with children in their home after tidying up for a home appraisal.

Key takeaways

There are various ways to estimate a home's worth, including assessed value, appraised value, and fair market value.
Using online tools, getting a comparative market analysis, and evaluating comparable properties are some of the ways to find your home's value.
Knowing the value of your home may help you make smarter financial decisions.

Knowing your home's value is essential when selling your property, refinancing your mortgage, adjusting property taxes, or tapping into your home equity with a home equity loan or other product.

What is your house worth?

If you've seen homes go up for sale in your neighborhood recently, you may wonder what is my house worth?

While you can't place a dollar value on the memories and experiences you've had living there, the answer to this question will differ depending on who evaluates your property and for what purpose.

When determining your home's worth, you may come across different valuation types. Understanding each one may help you get a better idea of the value of your home.

What is the assessed value of a home?

The assessed value of a home is an estimate of its current value by a local government authority. It's normally used to calculate property taxes each year. Assessed value is generally calculated as a percentage of a home's fair market value based on an assessment rate determined by the local county or municipality.

What is the appraised value of a home?

The appraised value of a home is determined by a professional appraiser, who typically conducts a visual inspection of the property and considers various appraisal standards.

Lenders often use a home's appraised value to calculate the loan-to-value (LTV) ratio, which may determine the amount of money they are willing to lend a buyer and other factors. Appraised value may also be used for refinancing or home equity financing.

What is the fair market value of a home?

The fair market value is the price the buyer and seller would likely agree on through their negotiations under normal market conditions.

What is the market value of a home?

The market value is the estimated price a home will sell for on the current housing market, based on supply and demand.

How to find the value of a home

There are many resources you can use to estimate your home's value:

Use online tools

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

Get a comparative market analysis

Real estate agents may provide a comparative market analysis (CMA). This estimates your home's value based on an evaluation of your property, market trends, and other factors. A CMA may be done before listing a home for sale.

Use a house price index

A house price index is a tool that typically measures home prices at different points in time. It may help you estimate how your home's value has changed over the years.

Get a professional appraisal

A licensed appraiser can determine the appraised value of your house. These professionals are typically used when someone sells their home, refinances their mortgage, or in other situations.

Evaluate comparable properties

You can research comparable properties in your area to estimate the value of your home. Browse websites with MLS listings to find prices for homes like yours. While researching, consider factors such as square footage, age, condition, amenities, and the number of bedrooms and bathrooms.

How to calculate your home’s assessed value

If you want to calculate the assessed value of your home, which is one method for determining its worth, you need to know its market value and the assessment rate set by your local government authority. There are various ways to know your home's market value, including getting a CMA and using online property valuation tools.

Then you can use this equation:

Assessed value = Market value x Assessment rate

For example, 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 or municipality to calculate the assessed value of your home with this equation:

Assessed value = Property tax bill x (100 / Real estate tax rate)

For example, if your property tax bill is $3,400 and the real estate tax rate in your county is 1%, you can calculate that your assessed value is $340,000.

You can typically find real estate tax rates online or by calling your local authority.

Benefits of knowing your home’s value

Knowing the value of your home may help you plan your finances more accurately.

For example, if you bought a home for $200,000 and its market value is now $350,000, your equity may have increased. If it has, you may be able to secure a home equity loan and use it to buy a second home, fund a renovation project, or consolidate debt.

You can use this loan amount calculator to see how much money you may be able to borrow with a home equity loan or mortgage refinance from Discover® Home Loans.

Knowing your home's value can help you calculate cash out refinancing options. With a cash out refinance, you can replace your existing mortgage with a new one for a higher amount and receive the difference between these two amounts in cash.

Assessed value vs appraised value vs fair market value vs. market value

Assessed, appraised, fair market, and market value all have different uses:

	What it means	Used for	Created by
Assessed value	Estimate of your property's current value by a local government authority, typically for tax purposes	Working out property taxes	County or municipality tax assessor
Appraised value	An appraiser's estimate of your property's value	Mortgages, refinancing, home equity financing, etc.	Professional appraiser
Fair market value	The price the buyer and seller would likely agree on through their negotiations in normal market conditions	Buying/selling a property	Factors that reflect the price that buyers/sellers would likely agree on
Market value	The estimated price a home will sell for on the current housing market based on supply and demand	Selling/buying the property	The market and other factors

Closing thoughts: The value of your home

Knowing what your house is worth may help you make smarter decisions if you're thinking about selling, refinancing, or tapping into the equity in your property.

It's always a good idea to stay aware of the current value of your house. It's an important financial asset as well as the place you call home.

Not looking to move? Explore ways you may be able to use your home equity with Discover Home Loans.

Main: The information provided herein is for informational purposes only and is not intended to be construed as professional advice. Nothing contained in this article shall give rise to, or be construed to give rise to, any obligation or liability whatsoever on the part of Capital One, N.A. or its affiliates.

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