Have you stopped to think of what tools and information Realtors use to make educated opinions about property prices? I've been asked by many sellers, and some times confronted in not so kind terms, how was it that I came up with the price point opinion for their most valuable asset.
Where does the information used to price the home come from? What metrics are used to determine an accurate price? These are some of the most common questions asked by many.
As Realtors we have access to the MLS (Multiple Listing System) which provides a world of information. We collect property data from all these assets to formulate a price opinion of the subject property.
We start with property's county tax data which includes physical property details such as property square footage, year built, lot size, etc. This information is constantly flowing, like a living breathing organism, since the county keeps tracks of added dwelling square footage for their tax assessments. We evaluate the condition and amenities of the subject property, this helps us compare to the other properties nearby and their sell prices. This is mostly done once we have physically toured the home. Once all this information is gathered, we calculate and adjust accordingly depending on any changes. The result will be compared to properties recently sold nearby. At times, adjustments are made to reflect betterments needed or made to the subject property. Finally, we evaluate current market conditions, such as property asking prices that are currently on the market, These are considered as the competition.
This process is pretty simple and by no means scientific. This is a way to obtain a professional, educated price opinion, one that will later be sustained by a licensed Real Estate Appraiser.
If you would like to know what is the current value of your home click on this link, http://gozamiamirealestate.com/purl/cmareport.