As REALTORS® Susan and I find ourselves evaluating and valuing properties on a daily basis. Be it as part of the listing process or in helping a buyer client determine what to offer we are asked every day, “what is it worth?” Before I go on I must qualify my comments by stating unequivocally that I am not an appraiser. I have not met the training or testing requirements set down by our state to be licensed as an appraiser nor are my practices in property valuation guided by any regulatory body except to the extent that I cannot represent myself as an appraiser or the results of my work as an appraisal. That said I am called on to do CMAs (Comparative Market Analysis), typically for buyers and sellers, and BPOs (Broker Price Opinion), typically for bank or investor clients, as a regular course of doing business.
To the point of this post; as we set about valuing a subject property we look for other properties that are first of all CLOSE in proximity. Ideally, in an urban environment, within the same subdivision or neighborhood and if not hopefully within a one-mile radius. In more rural environments or with especially unique properties we may have to widen the scope of that search. Beyond proximity we look for, as much as possible, a CLONE of the subject property. We do not want to compare a 3,000 square foot two story with a 1,500 square foot one level or multi-level subject. Generally speaking, we look for properties that share a like style, a similar amount of finished space (+/- 10%), with a similar level of finish, and similar age in years (+/- 25%). Our third general requirement is that the sale of the comparable property be CURRENT which we define as being within the past six months. As with the other criteria we will at times need to stretch that time frame simply due to a lack of otherwise comparable sales within that time frame. If we do go back further than six months, then we need to pay particular attention to market appreciation or depreciation as it impacts that specific area. So there you have it, CLOSE, CLONE and CURRENT; the three C’s of property valuation.
Remember whether buying or selling, moving up or downsizing, Lincoln or Omaha, the Vaccaros; Paul & Susan, stand ready to assist you, your family, friends and co-workers. Call or email us today! Lincoln (402)817-0355 , Omaha (402)577-0820, info@WeSellNebraska.com (Paul & Susan Vaccaro – CBSHome Real Estate 15950 W Dodge Road, Suite 200, Omaha, NE 68118 – Woods Bros Realty 3737 S 27th Street, Lincoln, NE 68502.