If you ever are wondering what your home is worth and you don’t have the time nor money to contact a local appraiser or agent like myself, then look at my tips for some assistance.
How are homes valued?
Homes are valued based off of RECENT CLOSED sales in the area. Do not mistake these for listings. Many times I will have someone tell me “My neighbor’s house is listed for X amount. Isn’t mine worth that then?” NO! Anyone can list their home for whatever they want, it does not mean that it is actually worth that amount.
So how do you determine which closed sales are the best?
Here are the top six things to look for when searching for closed sales:
- Location – Start by looking for recent sales (within a year) located in your neighborhood.
- Time of Sale – You want to start looking for sales that have closed most recently. Start searching within twelve months. If there are no sales within the past year, you will need to expand your search to neighborhoods that you think are similar to yours. If you would consider to live there, then it is probably similar.
- Style – Start by narrowing it down to style of homes, example: 1 Story, 2 Story
- Size – Narrow it down by searching for homes close in Square Footage. I would do a range, for example: If your home is 2,000 sq ft, I would search homes from 1,500 to 2,500 sq ft.
- Bedroom/Bathroom Count – Look for homes with similar Bed/Bath count as yours.
- Condition – After you narrow down all other features above, you should have a range of values. For Example: If your search revealed 20 homes ranging from $250,000 – $350,000. You need to make an educated guess of how good or bad the condition of your home is. If it is all new, estimate it on the high end. If it is Low, Estimate it on the lower end. If it is Average, right in the middle.
External factors –Is your home located near a busy highway?, railroad?, lake front? These are factors that will greatly affect value.
Improvements – Do you have improvements that are considered to be over improved for the area or under improved for the area? For example: Maybe you have an in ground pool that doesn’t increase value, yet decreases it.
Using these tips is just a general guide on how the valuation process works. If you are having difficulty figuring this out, give me a call or send me an email and I would be glad to help you out. I have over 10 years of appraisal experience and I am a licensed broker. Sometimes valuing your home is the most important part in the selling/buying process. If you are selling you want to make sure you are not listing it over market value. Therefore, potential buyers will not qualify for financing. If you are buying, you want to make sure you are not paying too much for it.
Please let me know any way I can help
- Nick Conteduca
I have been a Broker/Appraiser in Chicago for 10+ Years. Please give me a call or email with all your real estate needs.
www.ChicagoStyleRealEstate.com
www.Facebook.com/ChicagoStyleRealEstate
Thank you!
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