Ever see a neighbor’s house selling for a great price and wonder if you could get a similar amount? Join us this week to find out what factors have the biggest impact on your home’s value, and enable you to get top dollar.
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”
