Sample Market Evaluation
Pricing your home is KEY to getting your home sold for the best possible price in the shortest amount of time. Rather than pull a few homes from the MLS and send over a quick link to you for you to look over with a suggested price, I take the time needed to both prepare a current evaluation but also I take the time to thoroughly share with you my comments on how I arrived at a possible listing price for your home.
Below is just one example of the time I devote to preparing a current market evaluation of a home.
Below at the very bottom is a link (purple) to comparable homes that I will use with comments pertaining and how I feel they compare to your home.
First however, I would like to advise you how I enter my search criteria. As you know, the best comparable you can have is the exact same home, next door which sold yesterday. Of course, that is highly unlikely but I mention this as a basis for where a search ideally should begin and work from there. With that being said, I use the MLS map coordinates which is defined by a top grid number and a side grid number to define a rectangle area or a subdivision. In your case, I simply used Flying Horse. I use total square footage with a range of 200-300 square feet above and below your total square footage and 5 years above and below your year built.
To be in accordance with what comparable homes used by an appraiser, they need to be active, pending or sold within the last 6 months. These are the only homes that can be used. Often times, I have homeowners want me to refer to a home or 2 they know sold for a designated price a year and half ago and feel there home should now sell for more. This is not how current, and the key word is current, market value is established. Therefore, I try to stay as close to an appraiser’s methods as I possibly can.
From there, I try to consider the most obvious differences that such as finished basement, walkout basement, landscape, interior finishes, fireplaces, floor plan appeal, condition of course, address location (busy street vs. quite cul-de-sac), kitchen and bath cabinetry and fixtures, patios and decks (elaborate or common to none), views, etc. While I can’t possibly make the same kind of full blown detailed adjustments an Appraiser does, it goes to my initial feel for the value.
I also have you take a look at the comparable homes I sent because you will get a feel for how those homes compare to yours. I find homeowners know a lot about the neighborhood homes in terms of possibly why they sold, location and condition in comparison.
I also consider what County Records shows, Zillow and a few other sources show because, although not 100% accurate, they are extracting data from somewhere to provide a range or estimate. After seeing your home or recent photos, it helps me to know where within that range your home may land (higher range, lowest or somewhere in between).
With that being said, below is what I have determined:
** Country Records shows a range of $595,000 to $806,000 – keeping mind the $806,000 may be low for current market values. With that being said, I definitely place you at the top of that range.
** Zillow shows $809,000 which they may also be low for current market values.
- The closest comparable home is 1448 Yellow Tail which is the floor plan of your home. It sold for $668,000 on 10/24/18 which is considerably low. Because Zillow shows your home at $809,000 and this home as today at $696,000, I think the fact that your home is 5 years newer, I believe this can make a difference in pricing due to being a high end home and located in Flying Horse with new model prices higher. It does concern me what an Appraiser would do with adjustments if he/she used this home for a comparable.
- It also appears that 1957 Goodyear sold for $803,000 in the same month as the home above that sold for $668,000. I would assume an Appraiser would hopefully try to seek information on why the large difference in price. For this reason, I’m not putting much emphasis on the $668,000 home as a comparable.
- 13610 Kitty Joe Court is an Active listing that has been on the market for 120 days listed at $835,000. It is 2 years older than yours but it was a former model home which those tend to be really finished off to a high end quality. Because it is Active, there is no way to know how much downward the price needs to go to sell or what price it will eventually sell for.
- 2009 Walnut show it is an Ashton Classic home so I considered this one strongly because it is Active on the market for 33 days at a price of $774,499. It has a garden level basement also. It is finished off nicely in the more grey tones which is the more current upscale look that Buyers are seeking out. Any mountain views that it may be lacking compared to yours would not make up the large price difference if you list your home for $838,000. Zillow is showing this home at $775,000 and again Zillow is showing your home at $809,000. Regardless of Zillow, the question is whether your home shows significantly more appealing when Buyers look at both homes for sale.
- 13609 Kitty Joe which was originally listed for $849,000, was on the market for 310 days and finally sold in October 2018 for $819,500. It appears from the photos that is has a walkout basement which is about a $7,000 value over homes without a walkout. I place a lot of value personally on a walkout in terms of pricing and days on market. It would appear that after being on the market for almost a year, the selling price caught up with the current market value and it finally sold. Zillow shows the current value at $840,000.
- Last and a very important comparison would be a home at 12598 Chianti Court that sold last month for $777,500. It was on the market 173 days. An Appraiser would likely use this comparable home due to the what I stated above, closest home much like yours and it is the most recent sold. Zillow shows the current value of $775,000.
In conclusion, I think there is a reason why these similar homes are showing about $30,000 less than what Zillow has your home valued at. Zillow is in no means a valid source to establish value but I find it interesting that they have you a little higher than other similar homes. Given that, you would be over the $800,000 price but I’m not sure you can go as high as $838,000. Nothing, other than the model home listed at $835,000, has sold or been listed that high. There is also Active listings ranging from $739,000 to $835,000 with the most emphasis being on the other Ashton Classic listed for $774,499 with a walkout basement.
While it does appear to be somewhat “all over the page”, I think that’s due to the high end nature of the homes and being located in Flying Horse. If you have time to test the market, I would suggest a price more around $825,000 or $829,000 staying below $830,000 and see what feedback may be. I also have to consider that if these other homes sell and close before yours, they are going to serve as more current comparable homes for an appraiser and an Appraiser would have to find adjustments upward for your home from $775,000 to $835,000 to justify the much higher sale price. I don’t know if that can be accomplished unless other homes start selling upward of that $835,000 price. It would certainly help if the model home on Kitty Joe would sell to have a higher comparable with possibly others to follow. Right now, we seem to be at $820,000 for the highest sold.
Hope all this helps and call me if you want to discuss anything additionally.