Sometimes it might be difficult to come up with a sales price on a larger home that might be much larger than the predominant homes in the area. This is where a home listing appraisal by Appraise All really helps out, but these will help guide your way if you decide to do it on your own.
If there are a lot of sales in the area, but no good comparables based on square footage these tips should help.
1. Check the public record, find out when the increase was made, is the home newer? Were there possibly unpermitted additions that have been made to the property that are not reflected in the public record? Was there a garage conversion? Has there been any sales over the past few years of similar sized properties? This will guide your approach and possibly give you areas to examine to determine what the value of the additional square footage actually gives to the property when making your comparison to recently sold comparables.
2. Check the immediate neighborhood for older sales and adjust for appreciation or depreciation. Compare the difference in sales price of these larger homes to the predominant sized smaller homes in the area.
3. Come up with a price percentage difference and use this to compare what these older sales sold for and then use that percentage to see what your larger property should roughly sell for in the current market. You can also double check with the local appreciation and depreciation figures of the smaller sized properties over that time period to see if the figure is accurate.
4. Check out competitive neighborhoods in the area, expand your search area to see how larger sized homes are selling in comparison to smaller homes in the neighborhoods outside of the subject neighborhood. This should also give you a good indicator of proper list prices.
The best thing you can do is to get a high quality full appraisal performed on the property prior to setting the list price. Far more extensive than a BPO or comparative sales analysis, a full appraisal will take in to account all the indicators of value for your property. For the small cost of an appraisal, it could potentially save you tens of thousands of dollars by having your property sell below market value or having your property sit on market for months on end with no sale.
Contact us for more information. Appraise All Real Estate serving San Diego County for over 14 years. 858-232-3348
Bryan Knowlton is one of the leading appraisers in the area as well as a highly requested speaker, author, consultant and more.