Market Analysis and New Homes in Richmond
A comparative market analysis to determine the fair market value of new homes in Richmond is a science though lately it may feel like an art. Volatile times and rapidly adjusting prices can cast a mysterious aura over the pricing process, but in reality a market analysis is very simple. To remove the mystery, Boone Homes will expose four basic demands of fair market value.
Demand number one: Fair market pricing demands a home be compared to other similar homes. When comparing homes to other homes it does not simply mean comparing homes with four walls and a roof acting as shelter with other homes that fit the same criteria. A true market analysis must take into account the age, condition, features in the home, construction styles and size of the home site. In simpler terms, a one-level home cannot be compared accurately to homes with a second story nor can homes with first-floor owner’s suite be accurately compared with homes that have the traditional second-floor owner’s suite. Comparisons of mismatched homes will not accurately represent a home’s value. Comparisons to foreclosures or distressed properties will not give a true reflection on a home’s market value unless the predominant inventory in the neighborhood is distressed.
Demand number two: Fair market pricing demands a home be compared to like homes in the same geographic area. For example, if there is a home of similar nature that sold on your street, the information from that home will carry greater weight in the analysis than a home that is located in the next neighborhood over. The reason a home on your street will carry more weight in the analysis is because it shares the same community lifestyle. A planned community with a pool, tennis courts, sidewalks and parks will have a higher value than a neighborhood with only homes.
Next time, we will discuss the remaining demands to fairly analyzing the market value of your home or a home you are seeking to purchase.
Richmond custom home builder Boone Homes has been constructing new homes in the Richmond metro area for more than 30 years. Each home is built with care in some of Richmond’s most sought after communities.
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