Understanding Property Valuation
Property valuation is both an art and a science. While this calculator provides an estimate based on key factors, actual market value depends on many variables including recent comparable sales, unique features, market conditions, and buyer demand.
Use this estimate as a starting point for understanding your property's worth. For official purposes like selling, refinancing, or legal matters, always obtain a professional appraisal from a licensed appraiser.
Key Valuation Methods
- •Comparative Market Analysis (CMA): Compares recent sales of similar properties in the area
- •Cost Approach: Estimates land value plus construction cost minus depreciation
- •Income Approach: Used for investment properties based on rental income potential
What Drives Property Value?
Location (40-50%)
The #1 value driver. School districts, crime rates, walkability, proximity to jobs and amenities all heavily impact value.
Can't change location, but neighborhood improvements over time increase value
Size & Layout (20-25%)
Square footage, number of bedrooms/bathrooms, lot size, and functional floor plan all affect value significantly.
Can add square footage through additions or finishing basements
Condition & Age (15-20%)
Well-maintained homes command premiums. New construction typically worth 10-15% more than older homes, all else equal.
Regular maintenance and strategic updates preserve and increase value
Market Conditions (10-15%)
Buyer's vs seller's market, interest rates, local economy, and seasonal trends impact what buyers will pay.
Can't control market, but can time sales to maximize value
How to Increase Property Value
Kitchen Remodel
ROI: 60-80%
Updated kitchens are top priority for buyers. Focus on cabinets, countertops, and appliances.
Bathroom Updates
ROI: 60-70%
Modern bathrooms with quality fixtures add significant value. Even minor updates help.
Curb Appeal
ROI: 100%+
Landscaping, fresh paint, new front door. First impressions matter tremendously.
Add Bedroom/Bath
ROI: 50-60%
Converting space or finishing basement to add bedroom increases value significantly.
Energy Efficiency
ROI: 50-70%
New windows, insulation, HVAC systems. Buyers value lower utility costs.
Address Deferred Maintenance
ROI: 100%+
Fix roof, foundation, plumbing issues. Prevents value loss and negotiation leverage.