Property Valuation Estimator

Understanding Property Valuation

Knowing your rental property's current market value is essential for refinancing, selling, or evaluating your investment portfolio. Our property valuation estimator provides a quick estimate based on multiple valuation methods.

Three Main Valuation Approaches

1. Sales Comparison Approach (Market Approach)

Compares your property to similar properties ("comps") that recently sold in your area. This is the most common method for residential properties. Adjustments are made for differences in size, condition, location, and features.

2. Income Capitalization Approach

Values the property based on the income it generates. Two common methods:

• Gross Rent Multiplier (GRM): Property Value = Annual Rent × GRM (typically 12-20)
• Cap Rate Method: Property Value = Net Operating Income ÷ Capitalization Rate

3. Cost Approach

Estimates the cost to rebuild the property from scratch, minus depreciation, plus land value. Commonly used for unique properties without good comparables.

Factors Affecting Property Value

• Location: Neighborhood quality, school districts, amenities, crime rates
• Size: Square footage, number of bedrooms/bathrooms, lot size
• Condition: Age, updates, maintenance, structural issues
• Market Trends: Supply and demand, interest rates, local economy
• Income Potential: Rental income, vacancy rates, operating expenses

When to Get a Professional Appraisal

While online estimators provide useful ballpark figures, you'll need a professional appraisal for:

1. Mortgage refinancing or obtaining a home equity loan
2. Selling your property (CMA from real estate agent)
3. Estate planning or divorce proceedings
4. Property tax appeals
5. Partnership buyouts or investment decisions

Related Tools

Once you know your property's value, calculate your investment performance with our ROI Calculator or estimate potential rental income with our Rental Income Calculator.