How to Calculate Fair Market Value of Houses for Sale in Greenwood Indiana

The real estate market is very fluid in that rates change fairly quickly. The house you bought in the city of Greenwood Indiana ten years back had been priced much lower in recent years due to the housing downturn. This year, however, home prices are picking up slowly and many homeowners are choosing to have their homes appraised to determine their current fair market value. In a nutshell, getting the current value of your home necessitates comparing it with similar houses for sale in Greenwood Indiana.

Market Analysis

You should first obtain a Comparative Market Analysis (CMA) report from your real estate agent. Many agencies, such as the Mike Duncan Real Estate Group, offer this list which includes active and pending home listings and properties that were withdrawn or declared off the market.

Look at Comparable Homes

Through the CMA report, you may then cross-reference comparable houses according to your preferences in size (square footage), age, condition, home features, type, and other factors. It is recommended that you list around three to five comparable homes as your guide.

Getting Averages

Get the square footage of each of the five comparable homes. Then add the value and divide by the number of homes. This will be the average square footage of comparable homes in the market.

Fair Market Value

Then, taking the selling price of each of your comparable homes, add the value of each home then divide by the average square footage you have just determined. This value is the average price of the home (per square foot) in your local real estate market. Multiply this value by the total area (in square feet) of the home you intend to sell. The number is the fair market value of your home. Remember that in calculating the price, a little error in the process may translate to a big one in the final estimate, so make sure to check your math a few times over. Getting the current fair market value can help homeowners put up their own houses for sale in Greenwood Indiana. It can also aid them in other related real estate procedures later on, such as refinancing, getting a home equity loan, and tax reassessment.

Know How Much You Can Spend on Homes for Sale in Greenwood Indiana

Greenwood is located just off the very center of Indiana, fairly close to the state capital of Indianapolis. Proximity to the state center makes city living ideal for working professionals and big businesses alike. If accessibility is an overriding issue and you are looking to relocate, there are many real estate agents who can help with your home purchase. Here are some tips for choosing homes for sale in Greenwood Indiana.

Annual Income

The first thing you should do is to calculate your gross annual income, or the total of what you earn in a year, including employment income, assets and other investments. This will be the basis from which you will calculate your home affordability. Your pay stubs and annual income return are documents you may need to get a more accurate number.

Liabilities

On the other side of the column, add up the debts you still owe. Make sure you draw up a complete list of existing monthly debt obligations, such as car payments, credit cards, student loans, and other debts. These liabilities will determine how much you are already spending in a month and will determine your budget for your monthly home payments.

Down Payment

From your yearly income, determine how much you can or are willing to pay for in down payment. Many lending companies offer different rates based on your down payment. The higher you are willing to pay for your down payment, the better (lower) your mortgage rate will be.

Real Estate Costs

Besides your monthly mortgage payments, you’ll have to take other annual payments into your calculations, such as real property tax, and homeowner’s insurance. Many real estate agencies, such as the Mike Duncan Real Estate Group, can give you solid advice regarding the current figures on property tax rules and policies in Greenwood, Indiana. For an estimate of homes you may be able to afford, enter the values (determined from the above considerations) in an online calculator. A roster of available homes will be shown and you can begin to choose from among the attractively packaged homes for sale in Greenwood, Indiana. Choosing and buying a home you want without breaking the bank is possible with just a bit of basic homework and calculations on your part.