Estimating The Value of Our House

Prompted by Crystal’s post last week: Net Worth – Do You Include The House? I thought I’d let you know how I come about an estimated value for our house (which I then include in our net worth totals!)

Over the last five years our house value has been up and down but has always ranged between £170k-£200k. It was tempting at the time to increase its value in our net worth calculation to £200k because it made the figures look better!! ;)  But I tried to remain realistic. 
I did once take it up to £185k but after the recession really kicked in, and because we’re not selling any time soon, I reduced it back to £175k.  Given the housing market in our area and what similar properties were selling for I think over time (the next 5-10 years) this is a good price to settle on.

Here in the UK I use a company called Zoopla to track the estimated value of house prices in our area (and I always check local property websites)……I think in the US you have Zillow.

Here’s the graphic I pulled from July’s Zoopla monthly report for our house. 

-As an aside the estimated rental value is exactly the same as I would have it at: approximately £650 per month.

I know these figures are not perfect, but they can be a good guide to use if you want to include your house in your net worth calculation.

How do you estimate the value of your house?

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4 thoughts on “Estimating The Value of Our House

  1. Hmmm i estimate the house based on what my parents and I think it would reasonably sell for, and the minimum… not the very best price because I’m not counting on getting that. My parents are in realestate and our realtor is a good friend too so I believe the number is realistic.

    I also keep an eye on comparable houses on the MLS site we have here. i think it’s realistic and yep I include it in my networth because I want my networth to accurately reflect the balance of my assets and liabilities, so I do edit it every once and a while if the market swings up or down.

  2. Yes Zillow is a good one here.

    I do look and see what other homes in the area are being sold for in the paper.

    I can’t remember where I read this, but someone had said to use a number that would reflect the cost of a realtor. I always thought that was a good idea.

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