Determining a home’s value is a key step whether you’re selling or buying. Here are the main factors I look at, and where to start.
Six factors that shape your home’s value
Location
Schools, transportation, amenities, and the neighborhood all affect price, along with local market conditions and future development. Start with your subdivision, then look at zip codes.
Comparable sales (comps)
The most effective method. Look at recently sold homes nearby with similar size, age, condition, and amenities, then compare their final sale prices.
Size and floor plan
Square footage, bedrooms, bathrooms, and layout all matter. Larger lots, pools, and newer builds can command a higher price per square foot. Homes over 3,500 sq ft can be harder to value, since builders have largely stopped building them.
Condition and upgrades
Look at maintenance, structure, and the age of the roof, HVAC, plumbing, and electrical. Upgrades help when they match current design trends. Before you make an offer, compare remodel cost with what a remodeled home sells for.
Market trends and demand
Check supply and demand, days on market, and recent price changes. High demand can push prices up, while oversupply can pull them down.
External factors
Nearby highways, transit, or commercial projects can help or hurt. Parks and waterfronts can add value. Avoid busy roads and homes near electrical transformers.
Evaluating a home’s value requires a careful assessment of multiple factors. By considering the location, comparable sales, size, condition, market trends, and external influences, you can gain a comprehensive understanding of a property’s true value. Remember, it is always beneficial to seek professional advice from real estate agents, appraisers, or home valuation experts to ensure an accurate evaluation. Armed with this knowledge, homeowners and buyers can make well-informed decisions and navigate the real estate market with confidence.
Start with online valuation tools
Online estimates
Free calculators estimate value from your property details and public records, so they give a quick ballpark. Try Zillow, Redfin, Realtor.com, or the assessor’s website, which is useful for checking square footage and permits but not price. Compare 3 to 5 estimates. See how I find values.
Listing alerts
Want periodic emails of actives, UCB, and nearby sales like yours? Email me at jay@jaybrugroup.com and I’ll set you up.
Hire a professional appraiser
Why get an appraisal
Buyers’ lenders require an appraisal. Sellers don’t, but one can prevent second-guessing before you list. Appraisals usually cost $450–$800, and I will pay for yours at sale if it helps you feel comfortable.
What the appraiser does
They visit the property, review recent and pending sales, and look at location, foundation, and amenities like pools, decks, or fireplaces. As your realtor, I can show up with facts, upgrades, and your best comps. Appraisals are usually final unless something was clearly missed.
Owners often disagree
Owners rarely agree with an appraisal at first. Rules like Dodd-Frank exist so lenders can’t choose or pressure the appraiser.
Analyze your computation
Finding comps
Aim for 8 or more sales. Start in the same subdivision or townhome community, then widen to the zip code, avoiding areas split by freeways or canals. Match square footage within ±200 sq ft (for an 1,800 sq ft home), year built within ±10 years, and sales from the last 90 days. Match one or two stories and builder models when you can. In Arizona, sales are limited, so you may need to widen square footage, drop the pool or garage requirement, or look back up to 180 days.
Making adjustments
Once you have a ballpark figure, adjust your comps up or down. No two homes are identical, so here is my general guideline. The appraiser has final discretion. A dash (—) means the item isn’t listed for that price range.
Surroundings
A busy street can justify subtracting 10–20%, and a very busy road may justify more. Lakes, mountain views, and construction can shift value by hundreds of thousands. Read this blog on items that hurt an appraisal: click here.
Items appraisers treat as condition
AC, roof, water heater, design style, driveway size, and landscaping are usually part of overall condition, not separate adjustments.
Ready to find your number?
If you’d like to evaluate your home, call me at 480-466-4917. I’ll run a thorough CMA, give you a fair value estimate and a suggested goal price, and explain why your figure may be higher or lower.
My goal is a price you can confidently stick to, even in a sluggish market.
Jay Bru
jay@jaybrugroup.com
