FIVE PRACTICAL TIPS FOR DETERMING THE VALUE OF YOUR HOME
Posted By: Shay Edney
In: How much is my home worth
Date: Fri, Nov 11th 2016 10:43 am
When it comes to selling your home, an accurate evaluation of worth is critical. Come in too high and you'll scare people off. Too low and you'll leave money on the table. Value is a matter of opinion and your home is worth what someone is willing to pay for it. That is the challenge when trying to determine value. The chief analytics officer for Zillow has been quoted as saying “If you were to sell the same house 100 different times with different buyers and sellers, it would close at a different price.” With that being said, here are a few practical tips that I use when determining the value for a home:
- Neighborhood or proximity: If at all possible, only compare homes from the same neighborhood. If the neighborhood is very small and/or if you don’t live in an established community, you will have to expand your search. Start at 1 or 2 miles. You may have to go further in rural areas.
- Size: The closer the better. I try to stay in the plus or minus 10% range for square footage if at all possible. Plus or minus one bedroom or bathroom.
- Age & condition: If your house is built in 2014, trying to use comps built in 1972 will not work. That shag carpet and the avocado green appliances were only cool back in the day.
- Features & upgrades: If you have a pool, backup to the marsh, or have a gold plated ceiling like Master P, you’ll want to search for homes with similar features. A home with panelling walls and laminate countertops will not compete with one with recent upgrades.
- Status & time: Find properties that are active, sold, & contingent and compare for the most accurate valuation. In most cases I will go back and look at six months of data. Once you go past 9/12 months, your comps are too old.
These are some of the filters I use when completing a comparative market analysis and it has served me well. I also make a point to preview the neighborhood competition before I price/list a house. If you live in Mount Pleasant, homes are closing at 98% of list price and that also needs to be factored in. Doing your homework will pay dividends and there's nothing stronger than data/facts when sitting across the negotiating table. If you’ve had thoughts of buying or selling, call me today.
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