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:
- The Same Subdivision / Area
- Similar Size (Square Footage)
- Similar Features (Beds/Baths/Pool, Upgrades like granite etc)
- Similar Age
- 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.