Determining Your Home's Worth

Realtors determine a home's worth through a process called a comparative market analysis (CMA). Here's how we typically go about it:

   1. Gathering information:
Realtors start by collecting detailed information about the property being evaluated. This includes the property's location, size, number of bedrooms and bathrooms, lot size, amenities, condition, and any recent renovations or upgrades.
   2. Researching comparable properties:
The next step involves researching recently sold properties that are similar to the subject property, also known as comparables or comps. These comps should have similar characteristics such as location, size, age, and features. Realtors typically look for recent sales within the same neighborhood or a similar area.

   3. Analyzing comparables:
Realtors analyze the comparables to determine how they relate to the subject property.  We consider factors such as the sale price, time on the market, and any differences in features or condition compared to the subject property. Adjustments may be made to account for these differences and bring the comparables more in line with the subject property.

   4. Assessing market conditions:
Realtors also take into account the current market conditions, such as supply and demand, interest rates, and economic factors that may influence home prices. We consider whether the market is a buyer's market (more supply than demand) or a seller's market (more demand than supply) as it can impact the home's value.

   5. Applying professional judgment:
Based on the information gathered and analyzed, realtors use their professional judgment and expertise to estimate the value of the subject property. We consider both the objective data (comparable sales, property features) and subjective factors (market trends, location desirability) to arrive at a reasonable price range.

It's important to note that while realtors are trained professionals in valuing properties, our estimates are not definitive appraisals. An appraisal, conducted by a certified appraiser, is a more formal and detailed process that provides an unbiased opinion of a property's value.

Additionally, automated valuation models (AVMs) and online home value estimators can provide rough estimates of a property's worth. However, these tools often lack the nuanced judgment and local market knowledge that a realtor brings to the table.
(972) 780-SOLD(7653)
Phillips Price Realty, Inc.
Po Box 382953
Duncanville, TX 75138
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