Category: Finding Your Home

hello hello hello H peeps this is Diane and  Randle bro your friendly realtor team H with   the pick lady team she’s presca pick lady that’s  right I’m here in Prescot Arizona coming to you   live and today we’re going to talk about  estimating value estimating value of the   home yep estimating the value of a home is one of  those things that everyone thinks they know how   to do right it seems really simple and they just  jump into it it’s a lot more complicated get it   than you would think mhm you can’t just go by oh  well my neighbor sold their house for a million (00:35) so I’m going to get a million not necessarily so  necessarily uh depending on is your neighbor on   your side of the street does your neighbor have  the same view you have yes does your neighbor   have a house that’s been recently updated it does  your neighbor have a nice flat yard there’s a lot   of you can’t compare two houses next door to  each other it might be apples to oranges so   it’s very important when you comper property to  do apples to apples that’s right M and one of the   big things people forget square footage yes huge  oh yeah that that one sold for a million and a (01:11) half yeah it’s twice the size of your house yes  so you your house is 2,000 square feet you can’t   command a million and a half when the other one  was 4,000 square feet now some of the automated   estimating tools like Zillow there there are  a whole bunch of them there’s one that we use   that is um uh only only Realtors are allowed to  use it um they can do a pretty good job of at   least giving you a range make sure you’re in the  right ballpark uh but particularly in Prescot it   is really hard to comp houses that you could have  one house and right next door it is a house that’s (01:49) got a much better view because it’s a little  higher uh it it’s you really have to know the   neighborhoods you really have to know the homes  you really have to be very clever about picking   comps M and you certainly have to adjust for  the square footage you have to adjust for how   how recently the home has been uh remodeled or  updated um there’s there’s a lot to it and uh   just understand that um and understand that  real estate agents do this all the time it’s   it’s it’s really a science it’s not as easy as it  appears even the automated system gives you just a (02:30) R they’ll give you a range the good ones will  give you a range if it doesn’t give you a range   it’s not a good system that’s right so you know  the standard realtor gives you a range uh we take   the range but then we hone it in yes so you need  to have a really good Agent who’s very familiar   with all of the neighborhoods and the areas and  who can even project out like they may use a comp   that’s five years old but you need an agent who  can take that comp and price it out as to what   it would go in today’s today’s terms and so as  a lay person this can get a little overwhelming (03:07) and confusing and uh some people will use uh a  a a a comp from a totally different neighborhood   or different subdivision or even we had we had a  professional appraiser come up from Phoenix yes   this is the bane of our existence right true  so particularly during covid it was hard to   get estimates done or appraisals done and uh  so they would call a appraisers from Phoenix   and these guys do not know these neighborhoods  they do not know these subdivisions so he used   comps from a subdivision which is really an entry  level subdivision to price luxury homes that were (03:47) in the subdivision next to it and he was off  by $200,000 $100,000 I’m like yeah I mean no   sir in his defense it was within a quarter mile  yes but you have to know the neighborhoods it’s   not just math it’s not just arithmetic it’s it’s  science yeah it is it’s not just oh the price per   square and you multiply it’s it’s more more to  it than that there’s a lot more to it you have   to look at views uh some homes on one side of the  street have no views the homes across the street   may have amazing views guess what the ones across  the street are going to have a higher price yes if (04:22) you’re on the other side and you’re like well they  got a million and a half why can’t I because you   don’t have a million dollar view so so you can’t  use that as an accurate comp yes and it could also   be that house has been completely redone from  just from the studs all the way up to the roof   yeah and the H your house has is severely dated  and needs to be you know uh updated and stuff yeah   you can’t compare those two it’s not a good comp  so you really need to make sure you get a good   professional who understands the neighborhoods  the homes the prices of the homes and and and (05:00) can adjust accordingly not just based on one  of those easy programs that gives you a range   and a lot of times people lie with Statistics I  think there are books how to lie with Statistics   so sellers will pick you know comps that show  really high price per square foot well like a   home that’s small you know like let’s say 1,600  square fet that home is going to be very high per   square foot the more the higher the square foot  footage the less it’s going to be per square foot   and it’s just because you’re amortizing the the  lot over the size of the home uh so smaller homes (05:40) will always have higher price per square foot  so you have to adjust for that so all of that   it’s a science my friend and people PE sellers  will will pick comps to make their homes uh seem   worth more than they are agent some agents will do  that uh buyers will do the same thing making the   house seem really really cheap when we estimate  the value of a home we do it unbiased we do it   as unbiased as we can be these this is what the  numbers are saying with our sellers we’ll say if   you want more than that there are things we can do  to try to get more than it’s worth but the comps (06:18) are telling me this you know numbers don’t lie  friends and we’ve had we’ve had sellers we had a   a very good friend of ours we sold their house and  uh we asked him how much do you do you think your   home is worth He said I’d be happy to get $850,000  we said we’re going to sell you home for a million   because it’s worth more it’s worth so after we did  the comp so don’t don’t try to do this on on your   own yeah we don’t try to get sellers to to lower  their price uh by using statistics against them (06:49) and we don’t we don’t try to get buyers to pay  more than it’s worth by using statistics we we   try to price it we do it unbiased unbiased right  where it should be we don’t overprice we don’t   price sell it fair and chances are it’ll conclude  fairly quickly for you so anyway keep that in mind   uh for some of you who were thinking um I think  I’ll just do this myself or I’ll figure this out   there’s a lot to this a lot more than you would  ever imagine and the stakes are high yes you know   the the medium price uh of a home in the city of  Prescot at this point is $650,000 you know you (07:27) want that priced well you want it pric right this  is very important uh this is a big part of your   assets and so you want to make sure you don’t  undersell and you want to make sure you don’t   overprice it and it gets stale and you just lose  time on Market yeah so it’s very important uh to   have a professional help you and guide you every  step of the way and give you the right price yeah   so that is it for estimating value uh if you  would like us to come and estimate your value   glad to do it for you feel free to give us a call  have any number of things on our website you can (08:01) request it or just give us a call yes happy  to help you yeah absolutely take care bye bye”