How the Value of Your Home is Determined

How Exactly Is The Value of My Home Calculated?

You have probably gone on to Zillow or Trulia and you’ve clicked on getting a Zestimate. You can go on to other websites and do the same thing. Today I am going to break that down a little bit more for you.

First, of course is the adage, location, location, location. Obviously, where the land that your home sits on, is located is going to be the first underlying factor of how much your home is going to be worth. In addition to that, let’s break that down a little bit more.

I’m going to use an example of homes that are close to the beach, but you’ll be able to apply this to homes that are in East County, or in North County, or down close to South Bay. It will apply to any part of San Diego County that you’re talking about.

Talking about beach homes, there’s two kind of classic styles that you’ll see close to the beach, especially in North County. One is sort of that fun Northeast Cape Cod look that’s got shingles, that’s comfortable. I think of walking in there with flip-flops that get kicked off at the door, and seeing dried starfish up on the wall, and it’s got shingles out front, and it’s got maybe a front porch with white posters.

On the other side, there’s another style, and that is the classic contemporary style close to the beach; white walls, minimalist style furnishings inside, and it’s very Zen feeling. Both styles are valid at the beach. Those two different types of home-owners or home buyers and sellers will look at the value of each of those homes very differently.

If you are the contemporary buyer, the Cape Cod style may seem maybe a bit sloppy to you that you might have to clean it up or make things more minimalist for you. On the flip side, if you are the Cape Cod style, then the Zen minimalist just seems a little too stark, and you want to warm it up some and add some color to it.

The reason I’m bringing this up to you on value is because, there’s nothing wrong with either of those styles, but the value that you attach to it will be very different, because you’ll be thinking in your mind of the changes that you want to make to it. So will any buyers that are looking at your home when you’re looking to sell, whether you’re in East County or whether you’re close to the coast. My job when I’m helping you look at this is to look at it from the viewpoint of having the largest number of people, largest target audience, the widest demographics to look at your home and see it as appealing.

When we’re going through this process, the point is to try and make it appeal as much as we can to both groups of people. That’s why a lot of times we’ll have you put away things so it’s easier for you to show your home as being emptied out so that the next person can picture their things in it. But also because when we’re talking about value, it will be based on style, and it will be based on primarily emotions.

The lesson today is that we all put our emotions into the place that we live, and when we’re looking to purchase, what we’re looking to find in those homes and what value we attach to it.

You can see on the screen this fun cartoon that my assistant sent me, that is a fun picture of how we value our homes depending upon your perspective. Obviously, if it’s the appraiser, or your lender, or if you’re looking at it, or the tax assessor is looking at it. Hope you get a little chuckle out of that. It kind of helps you understand where I’m coming from in helping you understand the value of your home.

As always, give me a call. I’m happy to help you and I’m here for you, ready to serve. You’ll see my number below. Talk to you soon.