The value of your house is not based on what you initially paid for the house, how much you’ve spent to improve the property or the fact that your best friend insists he would pay a specific amount for your house if he had the money. Your property’s value is what a ready, willing and able buyer would pay. To determine that value, it is necessary to look at comparable properties in the neighborhood which sold recently. When calculating your home’s value, consider your property the “subject property” and the sold properties “comparable properties.”
1. Look for comparable properties in your neighborhood, or similar nearby neighborhoods, which sold in the last six months. If you’re working with a real estate professional, she can typically assist you in this search; real estate agents normally have access to accurate data resources. If not working with a professional, you will have to investigate online resources listing current real estate transactions (which are often unreliable) or talk to your neighbors.
2. Select the three comparable properties which best match your house in age, size, lot size, roof type, amenities and style. Select a comparable with a similar square foot size, with no more than a 200-square-foot difference.
3. Adjust the final sale price of each comparable by adding or subtracting to each amount. If the subject property is newer, larger or has an additional feature, add to the final sale price to compensate for the difference. If it is the comparable which is newer, larger or has an additional feature, subtract from the final sale price. This is the most difficult step in the process, as the amount to add or subtract varies by region. The amount is typically far less than the initial cost of the additional feature.
4. Add together the adjusted, final sale price of each of the three comparable properties and divide the total by three to get an average adjusted final sale price. This is the estimated value of your house.
If you would like an up-to-the-minute market report of your homes value, one of our experienced agents would be pleased to provide you with a Maximum Home Price Analysis. Contact us today at www.BuyEastsideHomes.com/HomeValue