Think you know what your homes worth? Think again
I am sometimes tempted to roll my eyes when I hear people talk about how much a home is worth based upon statistical data such as price per square foot or assessed property values. Sellers, Buyers and realtors alike, we are all guilty of using this data as a true indication of what a home is worth.
Yes it is a good starting point when assessing the value of your home, but that is all. Let me give you an example.
I recently valued a Westside home for a potential seller. The seller like many had an idea what his home was worth. He based his calculations purely on listing prices of similar homes around his area. Reasonable assumption you would think, but in reality that was his downfall.
are some facts for you to think about based upon my own research into homes in
1. The average price per square foot of homes that were listed in the area was approximately $1,300 per square foot
2. The average price per square foot of similar homes sold in the area over the last 6 months was approximately $1,030 per square foot.
3. The average percentage above assessed value of homes sold in the area over the last six months was 37.5% above assessed value.
Using the square footage and assessed value of
my sellers home:-
Based upon price per square foot of listed properties listing price would be approximately $3,900,000
Based upon price per square foot of recently sold homes listing price would be approximately $3,000,900
Based upon 37.5% above assessed value listing price would be approximately $2,400,000
You can see there is a wide spread in the results basing our calculations on traditional data alone. Many more things come into play, such as the style of the home, the functionality of the home, the location of the home, the condition of the home, and a whole lot more. In the end a Buyer will only pay for your home what it is worth to them, as most of us buy with our hearts and not with our head. That’s what makes pricing a home to sell quite difficult; perhaps the most important factor when listing or buying is the experience and track record of the realtor.
Please feel free to call or E Mail me if you have further questions