What’s my valuation? Home Appraisal is a precise type of calculation used to determine what your home is worth in today’s market place. If you use a particular guideline to understanding the right steps, you’ll probably be one step closer to selling your home.
I’ve heard of seller’s doing Zip Code searches and believing that this is the right process. They base their research on an average broken down by Price per Square Foot. Of course, they also factor upgrades to come up with a number that makes sense for them. Unfortunately many of the homes that use this valuation stay on the market for a very long time.
Another scenario I’ve heard and seen is looking at a 3-5 mile radius based on sales from 1-2 years ago to date and coming up with an average price per sq. Ft. I see a couple of challenges supporting this; how can you base an average when the neighborhood across that street is $10-$20 Dollars a sq. Ft. more than the community where you reside? Secondly, how can you base your comps looking at homes that sold over a year ago when the market fluctuates?
Let’s look at some guidelines that will make you the seller a better appraiser of your home:
• Research homes that have sold within the last six months to date. Remember that the market shifts up and down so stay true to the six month rule.
• Use an average of a 300 sq. ft. range when evaluating homes that have sold. If your home is 2,300 sq. Ft., use comps that sold within the last six months to date using an average of 2,000-2,600 square feet.
• If your home is a single level, only use comps based on other single level houses; can you imagine 2 story homes being worth twice as much just by having a second level? On average single level homes get more price per sq. Ft. then two story homes.
• Search for homes in your particular subdivision, not a different subdivision across the street. If your neighborhood has comps within the last six months to date, there’s no reason to go outside of the area as those comps will never be accurate or used.
• Research Tax Records to look up recent homes that sold. Not all home comps show up in the Multiple Listing Service (MLS). There are homes that sold on the market that were excluded entirely from “MLS”.
There are other adjustments to factor when evaluating a fair price for your home. Is your home backing a busy street? Does your home have Power lines in front or back? Is your kitchen up to date in today’s standards or neighborhood? Do you have a Pool? Do you have landscaping and is it sub-par? There are ways to calculate for some of these factors listed above. Contact your local and trusted real estate professional for additional help factor what your house is worth in today’s market!
Good luck selling your home and thank you for visiting http://www.homescottsdaleaz.com.