Prosper Home Value Estimator
Estimating Your Home’s Value
Accurately estimating a home’s value can be just as much of an art as it is a science. More than just beds, baths and square footage, an accurate value analysis must incorporate dozens of variables into each calculation.
The most common approach for estimating value, using comparable active, pending and sold homes, requires in-depth analysis of multiple properties. Factors such as lot size, house condition, upgrades, floor plan, living space, construction and location must all be taken into account.
In addition, analysis of local market trends, interest rates, distressed properties, zoning, taxes and seasonal price fluctuations must also be completed. These variables all play a huge role in what a property is worth. Currently, there is no automated tool that can account for all these factors. This is what makes hiring a professional REALTOR® with the right knowledge and experience so important.
Factors That Impact A Property's Value
There are many factors that contribute to the value of your home, some you can control, some you can’t. Below is a list of factors that play a role in what your home is ultimately worth.
These factors are based on houses intended for owner occupants, and do not reflect highest and best use value (such as a developer re-zoning real estate for another type of use).
Comparable Property Sales: The sale price of comparable homes in your area is typically the biggest indicator of what your house is worth. Recent real estate sales show what buyers are willing to pay for area homes, and more importantly, what appraisers determine those houses are actually worth. When evaluating comparable sales, adjustments are made to compensate for differences in amenities, features, size and more. Simply look and see what other houses may have that yours doesn’t, and vice versa.
Home Size / Upgrades / Condition: Living space is a basic measure in which most houses are compared, and what an appraiser will base much of their calculations on. A home that is appropriately sized for the neighborhood (conforming with other houses) will be on par with the real estate around it, but one too large with extensive upgrades can get priced out of a neighborhood and lose value based on the surrounding properties. Naturally, homes with superior upgrades that are in pristine condition, tend to sell for a higher price per sq/ft than similarly sized houses with no upgrades, or in poor condition.
Schools: The quality of public schools in your zoned school district is also a huge component of your home's value. Every parent wants what is best for their child, so access to a top notch education seems to always top the list for buyers with children. Even buyers without children recognize the value of a quality education system when it comes to the resale value of a home.
Location: Here in Atlanta, like many other metro areas, location is a key selling point for many buyers because it can greatly impact their quality of life. Access to parks, shopping, dining and entertainment can be a huge selling point and impact what buyers are willing to pay for a property. Homes in popular locations tend to have higher demand and usually sell quicker, which helps maintain values and spur price appreciation.
Neighborhood: The appearance of a neighborhood can greatly impact a buyer’s perception of your home and what they may be willing to pay for it, even before they’ve stepped foot in the front door. A safe and well maintained neighborhood will invite buyers right in, while a dangerous and unkept neighborhood will have them looking for the quickest road out. A neighborhood in decline will drive values down, while a prosperous neighborhood can cause prices to increase.
Lot Size & Type: The lot your house sits on does play a role in what your home is ultimately worth. Generally speaking, the bigger the better, but not always. Homes on flat lots that are private, well landscaped, waterfront, or with other views tend to command a higher selling price than those on an extreme slope, backing up to power lines or major highways, or highly exposed.
Important Report Disclaimer
Home value reports contain data and information that is publicly available and/or licensed from third parties and is provided to you on an "as is" and "as available" basis. The information is not verified or guaranteed by MetroAtlantaHome.com or our real estate agents. Neither the report nor the estimated value of a property is an appraisal of the property.
Any valuation shown in the report has been generated by use of proprietary computer software that assembles publicly available real estate records and certain proprietary data to arrive at an approximate estimate of a property's value. LivingWell Properties and its information providers shall not be liable for any claim or loss resulting from the content of, or errors or omissions in, the information contained in the report.