Pricing a Property: What's Its Value?

Determining a property’s value is a somewhat ambiguous process. I often work with clients, both selling and buying homes, who come from a scientific background. I genuinely appreciate data-backed decision making; I have been married to an engineer for 25 years! It would be so convenient to plug in a price per square foot for a home in a particular area, but it is not that simple.

As a real estate agent, my determination of a home’s value is really an interpretation of the market demand for that sort of property.  So how do I do that? I do look at sold properties in that area. First properties of like style are considered, then I look for homes on similar streets (a familiarity of the area and having been in some of the homes is needed for this). From that group, I find the homes that have similar attributes such as bedrooms, baths and square feet of living space. Next I consider factors such as: proximity to public transportation, views from the yard or deck, privacy of the lot, layout of the floor plan, how the home is updated, construction materials used, proximity to services and shopping, the school and school district's reputation, location of the schools, whether other homes in the neighborhood look similar in size and upkeep to the property being considered, plus more! 

Pricing does get unscientific as some point. The value of working with informed real estate agent is getting that opinion of what is a good value in the area. My goal is to help buyers select properties that serve their needs, that can also be sold if in the future. When I help sellers price their properties, it’s all about knowing what properties have recently sold and pricing a property relative to current market listings. So, determining a property’s value is a blend of data analysis, familiarity of the inventory, and an understanding what consumers are drawn to currently.