Are you thinking about selling? Getting a home valuation is the critical first step. This value allows a Homeowner to calculate their net proceeds and decide if it’s really time to move or not. The Hightower Team has years of valuation experience completing over 1000 Broker Pricing Opinions for our bank clients. We use standard appraisal guidelines to complete our valuations and quickly provide our clients with accurate information. Complete the form below to request a detailed home valuation.
Request a Home Valuation
Home Appraisal 101
Appraisers use guidelines outlined in USPAP to come up with their home value. USPA is also known as the Uniform Standards of Professional Appraisal Practice. Real estate agents also use these guidelines and they dictate the quality control standards of a home valuation or appraisal. USPAP creates accuracy and consistency for the entire real estate industry. These guidelines were created to give Buyers, Sellers, and Lenders an accurate number to use when making important real estate decisions. Brokers are not licensed appraisers, but may use the same guidelines to market and sell homes.
Comparable Homes
When completing a home valuation most appraisers will look for homes currently for sale or recently under contact, and homes that recently sold. These are called comparable homes and they are used to support the appraiser’s final value. The number of comparables vary, but no less than six. Using homes identical or very similar to the subject property will create an accurate appraisal. Below are the most common ways to compare a homes.
- Location: Look for all comps within 1 mile from the “subject” property, and ideally within the same neighborhood, development, or builder.
- Age: Comparable homes should not exceed 10 years. This creates a 20 year range, newer or older.
- Style: Homes that have the same square footage, but different styles are not comparable. A ranch style foorplan vs. a 2-story floorplan will have different values.
- Square Footage: Ideally all comps should be within 20% of the subject square footage, higher or lower. Try to keep homes as close in size as possible.
- Sold date: Look for homes that sold within the past 6 mos, and 1year at the most. Anything older than 12 months will not represent current market conditions.
- Condition: This can be subjective and seeing the property is the best way to determine the true condition. A home’s level of finish is important and can change a price dramatically.
Final Value
When determining the final value all homes must be closely compared to one another. Homes considered inferior or superior to the subject must be adjusted appropriately. Complete the form above and provide specific comments about your home to receive your comprehensive home valuation.
