Determining the Market Value of Your Luxury Home in Oregon and Washington
If you’re thinking of selling your home, one of the very first steps is to establish its value. Of course, you know what you paid for it, and you probably have a good idea of the amount of value you’ve added during your ownership. However, just knowing what you paid and what you think the property is worth doesn’t mean that’s what a buyer will pay.
Things are complicated even further when you’re selling in a luxury market since luxury home buyers have different values and goals when it comes to spending money on a home. World-Ranked Broker Terrie Cox, RE/MAX Equity Group, who specializes in the luxury home market in Oregon and Washington, explains how you can accurately determine the value of your luxury home.
Factors to Evaluate
Luxury home buyers are different from most homebuyers, as they place a lot of value on intangible factors. This can make valuing a luxury home more difficult than most other homes. Many of the techniques for determining value are the same, but special considerations must be taken when it comes to valuing a high-dollar property. These include:
Comparable Market Analysis in Oregon and Washington
This is a good start for valuing just about any home. Using the comparable market analysis (CMA) method, the value of your home is determined by looking at the values of other similar properties in the same market. Take note that sweeping, national trends in home sales aren’t as good an indicator as the trends within your area. This presents a difficulty, as it may be hard to find many other examples similar to your home in the area – especially since luxury homes tend to be unique in their features.
Property vs. Home Value in Oregon and Washington
One method to navigate the difficulties presented by the CMA approach is to look at the value of the lot itself and then factor in how much it would cost to build a home like yours on it. This is a good way to estimate the value of your home when there aren’t many others like it in your area.
This method is relatively uncommon, but in the luxury home market, it can be useful. If potential buyers might look at your home as an investment, it can be useful to try and account for the income it will generate for them. If the property is already being used to generate income, that’s even better. You can accurately predict how much it will pull in by analyzing existing financial statements.
Where to Turn for Help in Oregon and Washington
While there are such things as online home valuation tools, they are often fairly inaccurate, especially when it comes to luxury homes. When in doubt, talk to someone with experience in the industry first. Hiring an independent appraiser is a good bet for getting a more accurate estimate, and a Veteran Top Real Estate Broker like Terrie Cox can offer even better assistance in accurately valuing your luxury home and getting the price you want. For more information about determining luxury home market value, contact Terrie Cox, RE/MAX Equity Group today.