Hardly a day goes by without being asked, “What do you think my home is worth?”
I understand the insecurities behind the question. The economic news reported daily is confusing. The answer to the question cannot be found in the newspaper or the Internet or Zillow or the county assessor. The answer is found in your neighborhood.
Homes values are determined by research. Whether your Realtor or an appraiser performs this research, the exercise is the same. A Realtor will compare your property to recent sales in your neighborhood. This individual will find homes that have sold in the last six months to a year, geographically close to your home with similar views, quality, size and age. The comparable properties are analyzed. Financial additions and subtractions are included to equate the comparable properties to your home. For example, if a recent neighborhood sale has a one-car garage and your property has a two-car garage, a financial addition is included to the comparable property to create the value of a two-car garage.
International and national news are important. More importantly to your home value is the local real estate market, with emphasis on “local”. Downtown Manitou properties should not be compared to Westside homes. Crystal Hills homes should not be compared to Cedar Heights properties. You get the idea.
A huge motivating factor for home sellers is the interest rate, which is currently hovering around 4.9%. The last time the interest rate was that low, we were battling a conflict in Korea. Assuming a $250,000 home valued four years ago, the exact same monthly mortgage payment today will allow a buyer to purchase a much larger home valued at $310,000.
Springtime is prime time for home sales. More properties on the market induce more buyers into the neighborhoods. If your home is a quality product, is marketed properly and is valued accurately, you will have a high likelihood of a satisfactory sale.
Mike Casey can be reached at “Homes of Manitou Springs”, 719.685.1212.
