How To Find The Retail Value

Comments(5)

• 
  myfrogger27th October, 2003

  Basically you need to look at other homes in the area and make adjustments (positive or negative) based on condition, square feet, etc.
  
  Typically it is easy to find out once you are familiar with the area. Typically all the houses in a block or more are worth close to the same.

• 
  flacorps27th October, 2003

  If you look at similar sales in the neighborhood, the sale prices generally shake out in a range of values per square foot. Larger homes sell for a little less per square foot, smaller ones for a little more. Homes in good condition for a little more, homes in poor condition for perhaps a lot less.
  
  Find the range, and find where the home you're looking at fits within that range. That will tell you what "retail" ought to be. Be sure recency weighs heavily in your judgment of comparables. Last year's sales may reflect different market conditions.

• 
  TheShortSalePro27th October, 2003

  Both posts/responses are good answers. The only definitive measure of a home's value is the market, and assumes that both buyer and seller are informed about the local real estate market and under no unusual pressure (ex: foreclosure) to buy or sell, that no conflict of interest exists between brokers or principals, and that the property has been exposed to the market for a reasonable period of time.

• 
  Twinky143227th October, 2003

  Here's an example formula that might help
  
  Sy there have been 19 sales in the subdivision during the past year. Three sales are usually enough to provide an estimate, but the more sales you find the more accurate your estimate will be. The sample property has 1,756 heated square feet and there are six properties listed with between 1,700 and 1,800 square feet. Just add the sales prices for these six properties together to come up with an average sales price ($755,000 / 6)
  
  Square Ft Sales Price
  
  1,766 $125,000
  1,790 $100,00
  1,790 $151,000
  1,766 $116,000
  1,769 $107,000
  1,766 $146,000
  ________
  TOTAL $755,000
  ________
  So here is your Average
  Sales Price = $125,833

• 
  newinvestor4428th October, 2003

  Thanks for all the replies everyones expertise is appreciated.