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Pricing Reports

How can I make my report reflect my upgrades/renovations?

These reports assume a subject property is in average condition for the neighborhood with no substantial improvements or deficiencies when compared to any other typical home in the neighborhood. Therefore, the Valuation report is not going to take into consideration those upgrades or renovations. The Valuation Report is one piece of the puzzle when pricing your home. The Valuation Report will provide a high and low range for your property. It is left to the buyers and sellers to make value adjustments based on how much the upgrades and renovations adds to them in terms of overall value.

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Pricing Reports

I put in thousands of dollars worth of upgrades/renovations, shouldn’t that make my home’s value go up by at least the same amount?

Just how much any particular individual improvement might add to your home’s market value, can often vary widely from market to market, dictated by the wants and needs of each neighborhood.

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Pricing Reports

What type of data is used to compile a Valuation Report?

A Valuation Report draws upon available sales data in a local market, and uses it as a comparison to the property being valued. That is, how do the characteristics, sale price, sale date and other attributes of the property being valued compare to the properties that have sold recently, and over time? Measuring value changes over time allows the Valuation Report to assess the trend of activity that has occurred. Analyzing current sales against the property being valued allows the Valuation Report to account for market activity. The Valuation Report then utilizes these attributes to render a current value estimate.

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Pricing Reports

How is the value computed on a Valuation Report?

The value estimate uses scientific methods that employ statistics and mathematics and apply large amounts of data to the Valuation Report for analysis. Properties are compared to one another, and to the subject property for similarities and differences. Based on the data comparison, the model utilizes some properties and discards others in its assessment. For example, if the subject property is 2,500 square feet and one of the sales has 6,000 square feet, that sale may be discarded because of its dissimilarities.

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Pricing Reports

What if I don’t want to use this price? Can I make up my own price?

We recommend getting either a Valuation Report (AVM ) or CMA to use as a tool to help you price your home. There are many factors that go into determining the value of your property, including condition of your house, property values and the local housing market and trends. The price of your home should be based on both valuation and an objective assessment of current market conditions.

A few things to think about:

  • Are there a lot of houses on the market in the area?
  • Are houses selling slowly or quickly?
  • Is the economy doing well?
  • Are interest rates low or going up?

You need to research and find out what other houses have sold for in your area and what your competition has their houses listed for in your area. Armed with this knowledge you can then come up with a realistic price for your house.

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Pricing Reports

My Valuation or Property Report is wrong about my property? Why?

The Valuation Reports are based on public record information accessed from the county tax assessor and the county recorder. If you added bedrooms or bathrooms and have not had your property assessed since that time then data on your Valuation Report will not match the actual characteristics of your property.

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Pricing Reports

Can I have the data on my Valuation or Property Report corrected? How?

All of the property information reports that are available are based on public record information accessed from the county tax assessor and the county recorder. In order to have the data on your Valuation or Property Report corrected you would need to go to your county assessor office to make an appeal.

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Pricing Reports

What is a Property Report?

This report will provide meaningful property information on the subject property as well as the nearby sales. Median and average sales prices for the area are provided to help in gauging the sales price behavior in the marketplace. The 15 nearby sales will also provide sales information indicating property transfers that have been recorded at the county courthouse.

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Pricing Reports

What is a Valuation Report or “AVM”?

A Valuation Report is also known as an AVM. AVM stands for Automated Valuation Model and is a process to establish a market value of a property through “scientific” measures, versus a human’s inclination. To determine a property’s current value, an AVM uses computer decision logic based on sales trends, title records, neighbored analysis, market metrics, tax assessment databases and more. These reports assume a subject property is in average condition for the neighborhood with no substantial improvements or deficiencies when compared to any other typical home in the neighborhood. Once the searching and sorting for data is complete, the analysis is conducted and the AVM affixes a value estimate to the property.

It is important to note that an AVM is just once piece of the puzzle when pricing your home. You need to take into consideration the condition of your home, including any major or minor upgrades and renovations.

Categories
Pricing Reports

What is a Valuation Report used for?

A Valuation Report is used for several things:

  • Selling your house. A Value estimate is one piece of the puzzle to use in pricing your home for sale.
  • Calculating home equity. A Value estimate can help you see roughly what the appreciation of your property has added to your bottom line.
  • Timing a home-equity loan. To find out if you have enough equity to make it worthwhile asking for a loan.
  • Buying a house. Negotiating power, knowing how much a property is worth before you put in a bid. A Value estimate also give you an idea of local property values by letting you see what other homes in the area have sold for.