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    What Goes Into a Home Valuation?

    At the end of the day, your home is only worth what a buyer will pay for it. Each buyer is different; some buyers look only at the size and quality of the house, others pay more attention to schools and location. Below we have outlined some of the most important items that go into a home valuation.

    What Similar Homes In Your Neighborhood Sold For

    This is a great place to start to determine what your home is worth. Look at homes with similar square footage, bedrooms, and bathrooms that sold within the last 12 months. These homes are also known as “comps”. Whether it is a chase home value, a comparative market analysis, or a home appraisal; most real estate experts will rely on comps to estimate your home’s value.

    Set up custom e-alerts for comps in your neighborhoods here.

    How to Find an Accurate Comp

    Similar Features: Search for homes with similar features such as type of home (two-story or ranch), year built, and the number of bedrooms.
    Sold Recently: Look for homes that were recently sold – the more recent the better.
    Distance: Choose homes in the same neighborhood. Homes in a different subdivision could have different HOA rules, schools, etc.

    Finding an accurate comp can be difficult to do manually. Luckily we have software that analyzes hundreds of comps for any address with insights from local pricing experts. We then set up a complimentary, no-pressure consultation with you to determine your home selling goals, timeline, and if now is the best time for you to sell.

    You can get your complimentary home equity assessment here.

    Home Size & Usable Space

    Your home is made up of finished and unfinished square footage. Appraisers and Realtors use the finished square footage to calculate the valuation. Finished space typically does not include garages, attics, and unfinished basements. For example, if a 2,500 square foot home has a 600 square foot garage, the livable space would be 1,900.

    The value of a home is estimated by the sales price divided by the livable square footage of the house. For example, the above 1,900 square foot home sold for $300,000. The price per square foot would be $157.00 per square foot.

    The price buyers will pay per square foot can vary greatly. Depending on the market and location of your home and the upgrades in the home, $157 may be a bargain price or more than the home is worth.

    Upgrades & Updates

    The impact of a specific upgrade or update varies depending on the market you’re in and your existing home value. When consulting resources such as Zillow Home Valuation, or Zestimates, they don’t always take into account things such as livable space, upgrades, and features. With so many variables, it is always best to consult with an expert agent before making any improvements or changes to your home.

    Click here to schedule a complimentary consultation with one of our expert agents.

    The Local Market

    Even if your home is in the best location, in impeccable condition, and has top of the line upgrades, the number of other homes in the area for sale in your area and the number of buyers in the market can impact your home’s value. In the real estate world, there are two types of markets; a buyer’s market and a seller’s market.

    Find out what your home is worth in today’s market here.

    It’s easier to avoid common home selling mistakes when you know the factors that influence the value of your home. Keep the above factors in mind when pricing your home to help attract serious buyers and prevent a long time on the market.

    It’s easier to avoid common home selling mistakes when you know the factors that influence the value of your home. Keep the above factors in mind when pricing your home to help attract serious buyers and prevent a long time on the market.

     

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