How Do You Establish a Home’s Value?

Today I wanted to talk to you about how to establish home value when purchasing a property and when making an offer. The first step is familiarizing yourself with the neighborhood and the surrounding area by completing what’s called a comparative market analysis. The comparative market analysis, or CMA, compares the subject property (the property that we’re making an offer on) to like-kind properties within a half mile to mile distance.

What is a like-kind property? Let’s start with the basics: number of bedrooms, number of bathrooms, square footage and lot size. From there we will break it down to what features and upgrades does the property have, how many garages, does the property feature any additions or what type of amenities does the backyard have? We will next look at the condition of a property; let’s face it, a fixer upper is not a comparable property!

Next we will look at location. Everyone knows location, location, location because it is so crucial! Where does the property sit? Is the property an interior lot? Many times in Arizona, we have homes that face a mountain preserve and will carry a larger premium than an interior lot.

In the CMA, we look at all of these features and look back at properties that have sold in the last three months. This allows us to establish a trend due to the speed of the market in Arizona and to determine what the market is telling us. The outcome of the CMA will ultimately determine the market value. From there we will establish a range of very clear upper and lower limits that will help determine a realistic purchase price. This also prepares us for what the property will appraise for.

We know purchasing a home is a very complicated process and we can easily guide you through the transaction from start to finish. We take a very agrresive, yet professional approach, to negotiating the best possible offer for you. If you’re looking to purchase or sell a property, give us a call at (602) 954-HOME (4663). Thanks and have a great day!

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Sellers click here to find out what your home is worth.