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 Ask Mitch About The Value Of A Property You Are Considering!

Generally Speaking What Goes Into The Value Of A Property

1/3 Is About The Property Itself: The Location, Condition, Updates, Bed & Bath Count, Size, Age & All Features
1/3 Is About Similar Places For Sale A Buyer Could Also Buy, At The Same Time, In The Same & Similar Areas
1/3 Is About What Similar Properties, In The Same Or Similar Areas, Have Sold for In The Last 6-12 Months

If you're like most home buyers, you want to do your research and when the time comes to submit an offer you want to feel comfortable with your decisions, be able to put a property under contract that feels like a perfect fit. and know you are not overpaying. However real estate values are not like a ten-dollar bill that is worth $10 regardless of if it’s crisp and brand new, or if it’s twenty years old, dirty and torn. Neither the condition of the bill in your hand, the condition of other ten-dollar bills, nor the location of where you are holding the bill will change its value! If the value of real estate was also this precise and exact, just like the value of a dollar bill, then there would frankly be no need for real estate agents!

However, accurately evaluating the value of a house, townhouse, or condominium is a complex calculation that leverages years of experience and expertise like Mitch has, as one of the Top REALTOR's in the Greater Indy area! So let's start at the very beginning - with the RIGHT price! And the best way to find the RIGHT price is to ask Mitch Rolsky.

The 4 Most Common Ways To Determine The Value Of A Property, From The Highest Accuracy (4 stars) To The Least Accurate (1 star)

  • COMPARATIVE MARKET
    ANALYSIS (CMA)
    When Done Correctly
    It's The Most Accurate
     

    Comparative Market Analysis (CMA)

    This is an indication of the property’s value based on a detailed and adjusted analysis of the 4-6 most relevant and similar properties that have recently sold in your development and/or nearby. 

    A CMA should also increase or decrease the value based on the current market conditions including, interest rates, and the supply and demand at that moment in time. Most real estate agents will perform a CMA before listing a home for sale and great Buyer’s Agents will also complete a CMA when working for a buyer who is considering submitting an offer on a property.

  • APPRAISAL BY
    LICENSED APPRAISER
    Value Based On The
    Lender's Perspective

    An Appraisal

    State-licensed appraisers will walk through a property and write an official appraisal report. While appraisals offer a little protection for buyers regarding the value of a property, the customer for the appraiser is the mortgage lender not the buyers. Banks typically require appraisals when refinancing your home, or getting a mortgage for a new home, to minimize the lender’s risk by making sure the bank is loaning no more than what the property could be resold for if the buyer was unable to repay their mortgage loan.
  • INSTANT ONLINE
    HOME VALUATION
    Easy, Fast, Free, &
    Rarely Accurate

    Instant Online Value Estimators

    These are easy, convenient, and, best of all, free. There are many real estate and lending websites offering estimators out there. You can use this if you want a general estimate of your home may be worth. While these can help you decide if it’s worth considering selling or refinancing, these sites tend to dramatically undervalue or overvalue property values. So, using these when selling or purchasing a new place could create unrealistically high or unreasonably low expectations that could cost you thousands of dollars as both a seller or a buyer!

  • SALES PRICE PER
    SQUARE FOOT
    The Most Widely Used
    And The Least Accurate

    Price Per Square Foot Calculations

    Price per square foot calculations are often used by sellers, buyers and unfortunately even by some real estate agents to determine the value of a property in comparison to other recent sales. This approach divides the sale or list price by the above ground square feet to arrive at a price per square foot.

    If you are comparing to identical floor plans, with identical finishes and features, built at the same time, by the same builder on lots next to each other and both places have continued to have identical updates, then this approach might yield a meaningful value. However, this is rarely the case since price per square foot calculations do not reflect the many differences in properties like, bed and bathroom configurations, land value and location, garage spaces, finishes, updates and improvements, the year the place was built or any of the hundreds of differences between homes.

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Still have questions? Contact us today, or learn more about buying a home.

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