How We Determine the Value of a Home
Setting the price for your house can be tricky. Price too high and you’ll alienate buyers. Price too low and you’ll miss out on profit. That’s why Gluch Group uses a seven-step strategy to accurately determine the value of your home and help you to maximize sales.
Why Not Just Use Zillow?
Anyone can enter their home address on Zillow and take a look at a price estimate for their house. If you do so, you might notice that Zillow will actually offer to buy your home from you for cash. The downside of selling your home to Zillow is that they’ll buy it at a discount. And, they don’t buy higher-priced houses.
In reality, Zillow’s price points can be wrong. Sometimes, they’re super on-point. And other times, they’re way off.
As you’ll see in just a moment, using the MLS (Multiple Listing Service) is a more accurate strategy for performing a market analysis and coming up with an on-target price point for your home.
Here’s how we do it at Gluch Group…
Gluch Group’s 7-Step Strategy
- First, we enter in your home address on the MLS, and pull up basic data about the house. This includes square footage, number of bath/bedrooms, and market status.
- Then, we pick a subdivision of the area that includes your home. In Phoenix, a lot of the subdivisions are too small to use for market analysis. So, we rely on our own experience in the area to “fence in” a larger region of comparable homes.
- We’re looking for around 5-10 properties with similar attributes to your own house. That means the homes will be in similar condition, of similar size, and in the same neighborhood or a comparable neighborhood. We look through photos of houses that the MLS generates, and eliminate any that don’t seem to fit the bill.
- In some cases, we need to expand the area to generate more comparable properties.
- Then, we look at price range. How does the current value of your home compare to other homes with similar attributes? Do some of the homes seem to be inaccurately valued? For example, if a home has been on the market for months, it may be priced too high.
- Finally, we visit your house, drive around the neighborhood, and perform a general onsite evaluation to get a better sense of your home.
- Then, we determine a value. Using our research on MLS, onsite evaluation, and our own expertise, we come up with a price that’s right for the market.
If you’re interested in zeroing in on an accurate price point to sell your home, we’d love to help you. Or, if you’re interested in seeing how much cash you could get on Zillow vs. the open market, we can talk to you about that, too. In any case, give us a call at (480)378-6700. We’d be happy to help you out!