Home Evaluation Tips
Whether you are embarking on the task of selling your home, just curious about the value, or even refinancing to get an idea of how much equity you have to work with, you need accurate information. Ask any real estate professional and they can come up with a barrage of stories regarding improper preliminary home valuations by owners who mean well, but used incorrect information resulting in money lost or much embarrassment.
Today we’ll touch on a few tips to give any homeowner a great start toward obtaining an accurate home value regardless of the purpose for knowing what the home is worth.
Choosing the right comparables
As a general rule, the comps you choose will be based on three key areas. These areas include the size of the property, the age of the property, and the location or area of the subject property. The properties that are compared to the subject property in order to come up with an accurate price must be similar in structure. Aside from the size, age, and location there are other aspects that must be considered, but only the experienced real estate professional or appraiser will know what feature to compare and which values to give. Ultimately, it is advised to get professional help.
Use current sales
In today’s internet age, the public has access to almost all the information that licensed appraisers and agents have. The question is…how current is this information? The fact is, many websites containing real estate data is less than perfect. In the spirit of letting the cat out of the bag, a huge percentage of these sites rely on agents or homeowners to update the sales data. This results in homes for sale being on the web months even years after the sale took place, incorrect sales prices which did not include price reductions, seller concessions, or even correct dates.
Know your adjustments
Another vital step in comparing past sale to come up with a value for your home is making feature adjustments. In other words, if you are comparing a home with a pool to a home without a pool you would subtract the value of a pool as part of valuing the subject property. The challenge here is how much the pool is worth? Is it worth the cost involved with installation? Could it be more than the installation cost? Less than the installation? Historically values for pools or any other feature for that matter will depend on the market. A garage can be worth $8000 in one market and $5000 in another… and…. The markets can be as close as a neighboring county.
In the end, the best and most accurate pricing will come from a professional and not an outdated and inaccurate website.
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