How you can find the true value of your home with a professional’s help.
How you can find the true value of your Austin area home with a professional’s help.
Is the price per square foot important? That’s a common question among buyers and sellers in the real estate world when estimating home value. However, as with many things in life, the simplest solutions to a problem aren’t always the best ones.
When it comes to determining the value of a home in the Austin area for sale, both sellers and buyers seek straightforward concepts to quickly convey a property’s worth. One of the most commonly used concepts in real estate is the price per square foot. It’s calculated by dividing the home’s price by its square footage, and it seems easy, right? But the truth is, people who rely solely on this method often get the property’s price wrong. While the price per square foot can provide some insight into the general value of real estate in a specific area or neighborhood, it falls short as a reliable indicator of a home’s actual worth.
“Always work with a trusted professional to find a home’s real value.”
Determining a Greater Austin area property’s value involves considering numerous factors, and this is where experienced Realtors like us distinguish themselves from the majority of other agents. Here are the top five crucial considerations when trying to calculate a preliminary value for your home—whether you’re buying or selling. We recommend keeping these in mind before reaching out to us for a free, no-obligation market analysis:
1. Size comparisons. Comparable properties should be within 10% of the size of the property being evaluated. Keep in mind that as the property size increases, the price per square foot tends to decrease and vice versa.
2. Lot location and size. The lot associated with the property under comparison should be in a similar location within the neighborhood and roughly equivalent in size.
3. Finish quality. Ensure that the finishes of the comparable properties match those of the property under consideration. Factors like single-story vs. two-story should also be taken into account, especially when comparing a one-story to a two-story property, as these distinctions are significant to buyers.
4. Bedroom distribution. Consider the layout of the bedrooms, particularly when comparing single-story and two-story homes. Homes with all the bedrooms on the top floor tend to be less desirable for buyers.
5. Market conditions. Assess whether the market conditions when a home went under contract are comparable to the current conditions.
These are just five of the many factors that experienced Realtors like us take into account when conducting a thorough market analysis for a home.
If you desire more than a rough estimate of a home’s value in the Greater Austin area, don’t hesitate to call or email us today. We offer a no-obligation, no-cost market analysis, and we would be delighted to leverage our years of experience to assist you.
