Property Valuation

How much is your property worth?

For many homeowners one of the most difficult things is to decide how much the property should be listed for. Obviously the seller wants to sell the property for as much as he/she can, however if the listing price is too high compared to similar houses in the neighborhood your listing will generate very little interest from potential buyers. If your property has been upgraded (e.g. with Hurricane Impact Windows) it is important to highlight that in your listing.

The recent downturn in the economy and the related crash in the real estate market has made it even more difficult to determine a fair price for a property. If a neighborhood has a lot of short sales and foreclosures the value of your property might be dragged down as well. In that case it might be better to wait (if possible) until market conditions are more favorable and some of the distressed properties have been sold.

How is a fair and reasonable listing price determined?

In order to determine the value of a property the real estate agent is looking at recent comparable sales in the neighborhood. Recent sales means sales that have occurred in the last six to twelve months with the most recent sales weighing the most. It is also important to keep in mind that a property with ocean view has a different value than a property that is facing a busy intersection even if they are in the same neighborhood.

The most important factors determining the value of a property are:

• location
• number of bedrooms
• total sqft of the house and property
• the year it was constructed
• additional features (such as pool, garages, etc)
• condition and quality of the material
• shingles vs. tile roof
• carpet vs. tile flooring
• granite counter tops vs. laminate counter tops

For high-rise condos, the view (beach view vs. street view) is also an important factor. And if the property is in a community, amenities such as boating docks, tennis courts, fitness studio and concierge service play a role as well.

If no recent comparable sales have been made it will be more difficult to determine the fair market value. One possible way is to take a look at the assessment done by Broward county property appraiser.