much is your
is worth approximately as much as any other similar home
market area. Determining the proper “asking” price is essential
actually getting it sold.
Every Property is Unique
The problem with comparing homes rests with the "unknowns".
You know what
your home is all about, but you often have no idea
competition has to offer.
Logically, a home in good repair should sell
at least "fair market value". A home having special
amenities such as a wonderful view, expensive hand crafted woodwork
or lush landscaping
above market value. Likewise, the value of a home in need of repairs and updates may be adjusted down.
are commonly used, and misused, methods of determining real estate
The Appraisal Quandary
may have recently refinanced your home and now possess an
Appraisal stating that your home is worth
a certain amount of money. However, Appraisals may not offer an accurate
measure your home’s "market value".
The Appraiser’s job is to assure
the purchaser of the appraisal that your home is worth a certain
amount for a given purpose. Appraisals can vary significantly
depending on circumstances. Appraisals for refinancing, setting an estate,
the cost of insuring a property may all yield different prices. Evolving market
conditions and customer appeal are not always factored into an appraisal.
a perfect world you would be able to compare your home’s SEV (State
Equalized Value) to other homes in your neighborhood and arrive at a
realistic value for your home. Sadly, these numbers are only
estimates which have been established for tax purposes. SEV figures
are based on recent neighborhood sales and your home is assigned a
value without any consideration for your home’s condition or
amenities. While interesting to look at, SEV figures can be very
Square Foot" Dilemma
Price per square foot is not a bad rule of thumb. However, this
method of valuation does not account for a home’s location, its
overall condition and special features,
how the home's spaces are
used, or customer appeal. Two 1800 square foot homes
in radically different condition can not be fairly evaluated on the basis
of square feet.
It's also important to consider how the property was measured and if
the square footage includes space below grade or rooms that are
oddly shaped or unheated.
way to learn the current market your home is to request a CMA, or
Comparable Market Analysis, from a REALTOR.
prepared by a knowledgeable, professional REALTOR with good analytical skill is the
way to arrive at the selling price of your home.
A properly researched market analysis will compare your home to
recently sold homes and to similar homes that are currently
on the market. This report will give you a clearer picture of
buyer's have been willing to pay for a home like yours and what the
competition will be.