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How the Value of Your Home is Determined

How the Value of Your Home is Determined

You have probably gone on to Zillow or Trulia and you’ve clicked on getting a Zestimate. You can go onto 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, the land that your home sits on, is going to be the first underlying factor of how much your home worth. Let’s break that down a bit more. 

I am 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 CountyNorth County, or South Bay. It will apply to any part of San Diego County .

When it comes to beach homes, there are two kind of classic styles that you will often see in North County.

Cape Cod

One is that fun Northeast Cape Cod style that has shingles, it is comfortable. I think of walking in there with flip-flops that promptly get kicked off at the door, seeing dried starfish up on the wall, a front porch with white posters.

Classical Contemporary Style

On the other side, there’s another style, and that is the San Diego Classical Contemporary Beach home close to the beach: white walls, minimalist style furnishings inside, and a very Zen feeling. Both styles look great at the beach. However, there are two different types of home-owners and home buyers that 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. You may think that you might have to clean it up or make things more minimalist for your style. On the flip side, if you are a fan of the Cape Cod style, then the Zen minimalist may too stark, so you want to warm it up some and add some color to it.

The reason I am bringing this up to you in regards to home value is because- there’s nothing wrong with either one of these styles. However, the value that you attach to it will be very different because you will be thinking of all of the changes that you want to make to it- So will any buyers that looks at your home when you sell, whether you are in East County or close to the coast. My job when I am helping you is to take a look the viewpoint of having the largest number of people, target audience, and demographics to look at your home and find it appealing.

When we are going through this process, the point is to make it as appealing as we can to both groups of people. That is why we often have you put things away so that the next person can picture their things in it better. It is also because when we are talking about value, it is based upon personal style and emotions.

The Bottom Line

The lesson today is that

We all put our emotions into the place where we live. When we are looking to purchase, we are looking for our own style in these homes and we attach its value accordingly.

You can see this funny cartoon that my assistant sent me. It is a funny picture of how we value our homes differently depending upon our perspective. Obviously, if will change it is the appraiser, your lender, you , or the tax assessor 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.

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