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How to Determine the Market Value of Lakewood Homes for Sale

June 8, 2016

Have you ever wondered how Lakewood homes for sale are priced before going on the market? Realtors will suggest a price based on the estimated market value of the home. The market value is not just a number pulled out of thin air, but rather a carefully crafted estimation. Gain a little knowledge about how realtors determine the market value with these helpful tips:

Pull comps.
You may have heard a realtor use the word “comps” when discussing Lakewood homes for sale. Pulling comps actually means looking at comparable homes in the neighborhood to determine the market value of the one that you’re interested in. For example, if you would like to sell your home, a realtor could look at homes within your neighborhood that have sold within the last year and are about the same size. The sales price of these similar homes will be used to figure out the listing price of your home and many other Lakewood homes for sale.

Online Listing Sites Are Not Accurate.
Recently, major online listing sites such as Zillow and Trulia have added an “estimated price” feature to every home on the market. Although these online sites had good intentions, the truth is, these numbers are far from accurate. These websites use an algorithm to determine what the price of a home should be based on a number of factors including square footage, bedrooms and bathrooms. However, Zillow and Trulia do not take other important factors into consideration such as the desirability of the neighborhood. To get the true market value of Lakewood homes for sale, trust your realtor, not your computer.

Professional Opinions Matter.
Are you listing your home for sale? Many sellers and realtors may find that they disagree about how much a home should be listed at. A great way to end this debate is to contact a professional appraiser to value your home. These professionals have experience putting a value on Lakewood homes for sale, and their opinions are valued within the real estate community. How do they do it? Although there is no one size fits all approach, many use the cost approach, which involves determining how much it would cost to reproduce a home. This takes every part of the home, including interior upgrades, expensive finishes and the land, into consideration for a fair price that can be agreed upon by both the seller and agent.

The Price Per Square Foot Method is Outdated.
When determining the market value of Lakewood homes for sale using the price per square foot method, you are likely to come up with a number that is way off from the true market value of the home. Why? Every home is unique, from the size of the lot that it sits on to the details of the design inside. So, to say that each home is the same with the sole exception of the size is not a strong argument. For example, would you ever expect a 3,000 square foot home on a beautiful lake to be the same price as a 3,000 square foot home without a water view? Absolutely not! So, the price per square foot method, when not taking other factors into consideration, is not always accurate.

Now that you know how to calculate market value, it’s time to find a real estate agent to show you Lakewood homes for sale. Contact us at 720-220-2059 to talk to the experienced agents at Colorado Home Sales.