How Do Real Estate Agents Value Your Home?

If you're thinking about listing your home on the market, you may have questions regarding how we, as real estate agents, value your home.  Here is a quick overview of factors we consider in valuing your property:

1.  Local community:  If local businesses are thriving and local public services offered (emergency and police force for example) are efficient, this has a positive impact on the value of your home.

2.  Your neighborhood: The safety of your neighborhood and crime rates affect your property value.  Also, the visual appeal of your property and the surrounding homes is taken into consideration by both real estate agents and potential buyers viewing your home.

3.  School district:  The quality of the school district where your property is located is taken into account when valuing your home. Low graduation rates and lower rated schools in your district will bring your property's value down, while higher quality schools will positively affect your home.

4.  Community amenities: Parks and libraries, for example, bring up your property's value, while dirty, dangerous or poorly maintained community areas will negatively impact your home's value.

5.  Urban Planning and Property Zoning: Accessibility to local shops, eateries, entertainment, public transportation, and freeways generally drives your home value up.  What else is nearby your property?  If your property directly abuts a freeway or there is an industrial plant neighboring your property, then these nearby items would drive your home value down.

6.  State of the Economy: We all are familiar with this concept.  In a depressed economy, homes sales go down and your asking price will be lower.  In a flourishing economy, homes sales go up and asking prices escalate.

7.  Perceptions of your neighborhood:  Is your neighborhood known as the most sought after area in your town?  Or is it perceived in a certain way by the general public?  As subjective as these perceptions may seem, they do influence property values.

8.  Natural Disasters: Natural disasters such as blizzards/nor'easters (for the New England Seacoast), earthquakes, hurricanes, fires, and floods lower prices of homes temporarily after the disaster.  If you live in an area where a natural disaster is a recurrent threat, this may lower your property value permanently.

Thanks to Costello and Costello Real Estate Group and for helping contribute to this blog!