How To Find The “True” Value Of A Home.

Posted on August 22, 2011 by IC N in Residential
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grave mistake? The answer is: “Pull some
comps”.

 

If you are not sure how to do this, Zillow.com has a great tutorial on picking the best
comps.

The Location

Find comps that are close to your subject property. These comps should be similar
in size and age to the subject. Limit the search to a mile from the subject’s location.
However, if you cannot find a comparable property close by, extend the search further.
Even though it is farther away, the important thing is finding a comp similar to your
subject.

Moreover, homes in developments ought to be compared with those comps from the
same development. This is done, ideally, since these kinds of properties are built in
concert at a particular time, by the same developer.

The Recent Comps

When choosing a comp, choose those properties recently sold in the market, usually
within the last 3 to 4 months. Comps sold within this specific period hold the strongest
factor on how much the subject will earn. But if no comps can be found, those dating 6
to 8 months back can still be considerable comps.

The Price per Square Foot

Traditionally, real estate evaluation uses the price per square foot method. However,
this kind of method does not account the location or the state of the property. Hence,

before purchasing or selling a property, you should be cognizant of how the property
is measured and if the square footage takes account of other detached spaces on the
property like the garage. Also, homes that are alike and situated in the same zone can
differ widely in their prices if the interior designs are not at par with each other.

The Soft Features

Before coming up with a value, you need to take into consideration some of the “soft”
features of your comps list. These include:

A. the curb appeal of the property, whether it sits beautifully on a prime lot with a neatly-
kept lawn;
B. the state of the exterior such as the roof, paint, fences, etc;
C. its distance from shops, restaurants, or supermarkets;
D. the type of neighborhood, whether it is in a subdivision or an exclusive estate
E. traffic/noise in the area; and
F. proximity to schools

Taking these 4 easy tips in pulling a good comp will help determine for you a
reasonable market price for your property.