It can be extremely difficult to put a value on someone’s home for several reasons. The most important and problematic is emotions.
Homes are filled with memories and generally have been tailored to fit the owner’s tastes and styles.
There might be a wall that you marked with your children’s height as they grew. The backyard might have held a wedding or graduation party. It might be the place your baby walked or your grandchildren visit. If your children grew up in the home and played at the park next door, does that make it more valuable than the home three blocks away?
Other problems that get in the way of placing a value on the home are lack of comparable sales, how much is owed on the home and perhaps what the owner originally paid for the home. But if the time has come to sell, an accurate list price will make the selling and moving process much simpler.
So how do we find that price?
Many people turn to Zillow, Trulia or other online sites to determine value. In metropolitan areas, this can have some merit because there are subdivisions that have been built by the same builder and have only a few different floor plans. In a smaller area with more diverse locations like Durango, these websites often are inaccurate because they cannot accurately determine the difference in age and location.
The La Plata County assessor is required by state law to reassess properties every two years. In a stable market, that assessment can be very close to the actual market value. In a changing market, even a few months can make the assessed value much higher or much lower than market value. A county assessment is one measure but can be misleading for a current value.
Another factor that reflects on the final price is competition. Are there several places for sale in the area? If so, your price will need to be lower than if it was the only choice. If your home is the only one currently for sale in the neighborhood, it can bring a higher price.
High inventory can give buyers a selection and put them in a better position for bargaining. Low inventory reverses the situation, and an owner may have an opportunity to receive multiple offers.
Being in a neighborhood with competition from new construction can be problematic because buyers generally prefer a new home over an older home. If prices are similar, the new home likely will end up selling first.
Features such as remodeled kitchens and baths, landscaping, views and overall condition can greatly affect the final price. Hiring a real estate professional to help determine the actual market value is the best way to make sure that your home will sell for as much as possible when you are ready.
Gina Piccoli is a Realtor at Coldwell Banker Heritage House Realtors in Durango. She can be reached at gina@realestatedurango.com.
