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Determining Value

How Value Is Determined

One question I get asked frequently is how I determine the value of a home. Let me explain! When realtors and appraisers value a home, we first look at similar homes that have sold with the following criteria:

  1. The Same Subdivision / Area
  2. Similar Size (Square Footage)
  3. Similar Features (Beds/Baths/Pool, Upgrades like granite etc)
  4. Similar Age
  5. External Influences (School District, Proximity to Desirable Areas, etc)

Appraisers must use at least three homes in their report for the lender. If they can’t find enough data in a given subdivision, they look for similar subdivisions in terms of the subject property. When I do my valuations before I list your home, I am looking for homes that match the above criteria that I feel would be the best candidates for an appraiser to choose. I am usually within 1% (or less) of valuation accuracy.

REMEMBER: A house must appraise for a buyer to obtain a loan on your home.