- January 18, 2023
- Posted by: admin
- Category: Property value
Property values are mostly dictated by MLS recorded sales. Typically, a low to high range obtained with a criteria of time frame and neighborhood, subdivision or distance from Subject Property. Multiple listing sales are always recorded however, some sales including all cash sales like for sale by owner (FSBO) sales are not usually recorded.
The most common way realtors and appraisers assess the value of a home is by locating all like for like sales (same property characteristics: I.E. similar square footage, bedrooms, bathrooms lot size and style. Primarily within half a mile radius of the subject property, same subdivision or zip code. Most commonly sales within the last 3 to 6 months.
The best way to certify a property’s value is with an actual appraisal. These can be spendy deepening on the property’s size and complexity. There are two ways an appraiser will estimate the value of a home, a cost approach and/or sales approach. A sales approach would be using sales within the criteria mentioned as mentioned. A cost approach is the base or average value that will include updates that have been completed on the home that will ultimately increase the marketability and value. This would be above and beyond the average comps in the area.
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