Whether we are talking about a $90,000 investment property or a $2.5 million exceptional property, there is a lot to consider when determining the value of a home. You have probably heard the phrase “location, location, location” when discussing real estate, and it is very true that location greatly impacts the value. With that said, it is more impactful in relation to different areas, cities, or states rather than neighborhoods and streets. One neighborhood in Edina, MN might vary slightly from another, but prices in Edina will vary greatly from prices in Lonsdale, MN or in Grand Forks, ND.
When comparing properties within the same city or area, proximity to busy street(s), schools, etc. will still factor in under the location category, but we also have to start considering more details. A few of these details may be rather obvious like square footage and number of bedrooms/bathrooms, but there are many more to consider.
For example, I am always intrigued by the mechanical room in a house because I want all of my clients to know about the functionality of the furnace, AC unit, water heater, piping, etc. since these fixes can easily run up a check of $5,000+. Another main consideration is the condition of the doors and windows. Not only are they expensive to install but they can also run up a monthly check by not being sealed properly and decreasing energy efficiency.
In addition, on the exterior it is important to consider lot size, landscaping, and type of roofing/siding. On the interior – type of flooring/carpet as well as kitchen appliances, floor plan and even ceiling height.
All of these factors are important to consider when buying AND selling.
When selling your house, we will discuss all of these in order to agree on a list price. Understandably, homeowners often overestimate the value of their home (party due to Zillow and other platforms feeding this to them) but when truly evaluating the above factors, it usually becomes clear why we should price it the way we should.
To evaluate these for sellers, I complete a Comparative Market Analysis (CMA) which is a 20-30 page document that compares recently sold properties in the area and is adjusted based on the differences in the main factors (beds/baths/square feet). It will also include a marketing plan and explain what Edina Realty has to offer. In addition, detailed information about how the market is performing and future projections within that area.
When buying a house, we will discuss all of these factors in order to be assured we are paying the right price. Understandably, buyers often want the house that meets their needs for the lowest price possible. To evaluate these factors for buyers, I complete a Real Estate Review which is essentially a condensed 5-10 page version of a CMA. It also compares recently sold properties in the area and is adjusted based on differences, but it is confirming a price rather than determining a price.
I also do Real Estate Reviews for people to compare how much their home has increased in value since they acquired it.
If you are curious what your home is currently worth and would like a no obligation Comparative Market Analysis or Real Estate Review, please reach out and I will get it done!
Email me at bradyarthur@edinarealty.com OR message me on any of my socials linked in the logos below.
Cheers to all my readers, and please come back for more next week.
Brady
Brady Arthur Homes and Drones 