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.