Home Values

Whether buying or selling a home, one of the greatest considerations is identifying the value of the home.  There is so much to consider when pricing real estate, especially in our current market with its rapidly changing trends.  It must be done using the most sophisticated criteria, crafted by highly esteemed real estate researchers and economists.

Connect Realty agents use state of the art technology, tools and resources encompassing the best of that research.  As a result, our trained agents have the expertise needed in pricing real estate accurately.  So, when your agent conducts a CMA (comparative market analysis) on your property, you can rest assured that your home is listed at the appropriate price.  Our agents will also be able to provide their buyers with comprehensive and accurate comparable sales data and extensive information to ensure fair market pricing and fully educated purchasing power.

How Research Dictates Pricing: Although the market generally agrees that house prices reflect the value of individual housing characteristics, there is no consensus as to how some characteristics affect value. Researchers have examined numerous data sets and pricing models to determine the marginal effect of characteristics on house prices.  The science of house pricing ends up including not only an analysis of the characteristics of a particular property, but also how those various characteristics relate to each other. 

To finally arrive at a conclusion of value, the relationship between house price and the following nine housing characteristics are considered: (1) square footage, (2) lot size, (3) age, (4) bedrooms, (5) bathrooms, (6) garage, (7) swimming pool, (8) fireplace, and (9) air conditioning. These characteristics are considered along with the location and time of valuation. 

A CMA typically includes the following components:
  1. Research of active listings, recently sold properties and comparable properties by city, state, zip or specific address.
  2. Property information includes: listing details, photos, sales history, and public assessor details (property and tax assessment information).
  3. Property value ‘estimates’ (AVMs) are provided for each non-active property, with comparisons at the zip, city, county, state and national levels.
  4. Market trend data for an area, such as: average AVM (Automated Valuation Model), average listing and sales prices, average days on market, and the number of active listings.