Determining the Value of Your Home

How do Realtors value your home?

Real estate agents have a database of past sales history. They will look at a wide variety of different factors when considering value. What are the agents looking for when they compare another homes to yours?

1. Location

2. Size

3. Updates to the home

4. Recent Sale History & Market Conditions

5. What homes are competition against your home

6. Land Value

7. Plus Minus Strategy of Values you may have or don’t have in comparison to another home.

8. Age of Building & Systems to Operate it.

How do Appraisers determine Value?

Sales Comparison Approach

By far the most popular appraisal method, the sales comparison approach determines a home’s fair market value by comparing it to similar homes that have recently sold in surrounding neighborhoods. Professionals in the industry often refer to these properties as “comparables” or “comps.”

Because no two houses are exactly alike, the appraiser factors in price adjustments for all the differences between the comp homes and the house being appraised, which is referred to as the “subject property.” For example, if “comp A” has granite countertops and the subject property has laminate, the appraiser subtracts the value of the granite from the subject property’s total value. The appraiser continues to make adjustments for several comps, raising or lowering value based on differences in lot size, amenities, fixtures, appliances, finishes, and overall upkeep.