home Value

 

 The question every Seller wants to know, “What’s my home worth?”

In general, the value of anything is what someone is willing to pay for it, which depends on the number of buyers wanting the item (demand) versus the availability of the item (inventory), in consideration with current financial conditions. Unfortunately what one may have paid for an item or paid for improvements are not strong factors in determining value.

What You Paid
What You Need
What You Want
What Your Neighbors Say
What It's Value was Last Year
What You Invested in Improvements

 

We at Padque of Fort Lauderdale take a detailed approach (Detailed Pricing Analysis) when recommending a sales price. As with ninety-nine percent of other agents, we will look at the comparable properties which have sold within the area of your home, within the last six months. But this is only the beginning for us in our process, whereas for many other agents, it is also the end of the research.

Yes, we begin by looking at the comparables, but not every property that has sold in your neighborhood may be a “good” comparable. First, we want to look at the properties located closest to your home. We hope to find several within only a few short blocks. From here, we then want to narrow the list of comparables down further. This is done by determining and comparing the key features, square footage, layout, age and amount of updating to the home and lot size. Another words, we want to find homes which have recently sold very much like yours.

Once we have narrowed the comparables down, we then consider adjustments to the pricing based on the remaining differences between the homes. It may be an additional garage space, tile flooring, updated kitchen or other improvements, out- door deck, etc. Each of these items will add or subtract from the recommended sales price of your home.

Also to be considered is how long the comparable properties took to sell, coupled with the type of sales they were. Short sale and foreclosure properties do tend to be a little devalued. If they neighborhood has a high concentration of distressed, foreclosure or short sale properties, this will also affect the recommended asking price.

Other items of consideration when pricing a property are the terms of the sale for the comparable versus your home, whether financing was obtained, the amount of homes currently for sale in your neighborhood, and the current market climate. If demand is high and there are very few homes for sale within your area, this will drive the sales price up. Of course, the price would suffer if there is a high inventory of homes available.

In conclusion, just because a home on your street sold for $400,000 doesn’t dictate your home’s value to be at $400,000. Once adjustments are made, the activity of the market factored in, the recommended sales price of your home could be above or below that $400,000. Be careful when looking at Trulia and other websites to estimate the price of your home. These websites, as with many agents, are only considering the price per square foot (The dollar amount a home sold for divided by the number of square feet of living space within that home ) of a comparable to determine your home’s value.

Example:      
Comparable sold for $389,000 divided by 1,955 square feet of living space =  $198,97 per square foot.
Your Home 2,122 square feet of living space x $198.97 = $422,214
Again, this is where the websites and many agents stop.  We then consider additional differences:
  Additional Carport Space + $1500.00
  deck + 1000.00
  kitchen remodel + $20,000.00
  fireplace - 500.00
  newer air conditioning + 1000.00
  Recommended Sales Price = $445,200.00

 Don’t leave money sitting on the table. Be sure whoever you choose for your agent considers all the factors to get all your home is worth! Please feel free to give us a call at 954-566-0355 to receive a Detailed Pricing Analysis for your home. Also be sure to read Why REALTORS® Overprice Properties and the effects it has on a sale.