For those not necessarily selling, but still interested in pricing a home, here are the BIG 3 components:
Price
This is the dollar value that the seller should be reasonably asking for given current market conditions. Things that should be taken into consideration include factors such as recently sold properties. These should, preferably, be within the last 6-12 months. This way, you're taking advantage of the most recent market trends. These comparative sales should also be be similar in size (land, home square footage, number of rooms, etc.) and amenities (i.e., fences, pools, etc.) There are certain intangible factors that have to be considered as well such as location, surroundings, view from the property and more. One of the single, biggest factors, of course, is the location.
Value
The value of the market is subject to the prospective buyer and can differ from transaction to transaction. Locational amenities such as highly-rated schools nearby, access to public transportation, or distance to a certain employer, can place a higher or lower premium on certain properties to prospective buyers. Value can also be determined by a certain area's inventory. Low supply of homes, with high demand for them, will drive the market price up. The inverse of this relationship is also true: high supply of homes available, with low demand, will drive price downward.
Cost
The cost basis is determined by the land, materials and improvements that have been purchased and utilized. In a lot of cases, there is an inelastic value created when the cost of improvements is incurred. Thus, value is not necessarily a direct derivative of cost. More value can be created by spending money to make certain improvements. The value is a subjective property that is usually determined by the buyer's preferences and interests.
Now, sites like Zillow and Trulia have made superior attempts to value homes all over the nation, which are pretty decent.. But how can you fully trust a company based in Arizona with a computer algorithm against an agent in your local market who lives, works and studies in your locale? That's why I'm offering this service all month long… and thereafter I'm sure lol. Feel free to e-mail me to take advantage of this offer.
Thank you so very much for you continued support. Please feel free to contact me with any questions pertaining to this or any other real estate related topics at (352) 246-8706 or at jhurst@mmparrish.com. You can also visit my website at www.jasonjhurst.com and be sure to 'LIKE' my Facebook page today. And remember, when it comes to real estate, THINK HURST 1ST!