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Determining your home’s value in today’s market - Part 2
This is a follow up article to Determining your home's value in today's market - Part 1. What is the value of my home? I get that question often.
Location is primary consideration for determining the value of your "subject" property. Unless a property is in a rural area, I rarely use a comparable that is located more than a mile away from the one I am valuing. My preference is to stick to homes in the same neighborhood or condo complex as the subject property. A home in the same neighborhood typically are of the same age and construction quality. However I always at least check out what is happening in surrounding neighborhoods simply because prospective buyers are typically looking in those other neighborhoods as well. Appraisers normally use 2 comparables in the subject property's neighborhood and 1 outside of it.
The next most important consideration is the house's size. The preference is to keep the heated square footage of your comparables within 15-20% of the subject house and the bedroom & bathroom count the same as the subject house. The closer in size the comps are the better. Properties outside of these ranges are marginal comparables at best. A 3 bed / 2 bath ... more
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