How Do We Know a Home's Value?
- Judd Bristo
- Mar 3
- 2 min read
One of the most valuable things a realtor brings to a seller is a market analysis proposal that shows what the value of the home will look like to a potential buyer. This is done by using current listings and recently sold homes that closely match the details of the home that is being discussed.
Automated estimates, such as the ones you might find on Zillow, don't give you the full story. They don't, and they can't, take into account unique aspects of your home such as upgrades and improvements. They simply use an algorithm to look at what has sold nearby recently, and estimate a price based on square footage.
When I build a market analysis for potential sellers, it is usually done in two steps:
I will conduct a preliminary analysis before I ever go to the home. I'll pull comps, run numbers and create a listing price range based on the basic information about the home;
I will visit with you in your home to get a feel for the property. What makes it special, what is going to stand out to buyers, what are things that need to be fixed or corrected prior to listing? I will then adjust the suggested list price based on these factors.
My experience helps you zero in on a price the market will support and get your home sold on your terms.
A couple last points here:
It is very valuable to you-the memories and emotional attachment makes a home incredibly valuable in your view.
The new family who may buy your home doesn't have an emotional attachment to this property. Sometimes, you have to take this factor out of your calculations.
