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How-To Value A House (Determining Property Value)

what's up guys this is Chang welcome to

my youtube channel this video will be

talking about how to value a house in

determining the value for a piece of

real estate so as consumers have become

more real estate savvy most people

realize that Zillow's estimates are not

accurate and are not an appropriate way

to determine the price of a piece of

real estate going to show you guys how

to find the value for a piece of real

estate

that's do-it-yourself and can be done by

anybody from an experienced investor all

the way to somebody who doesn't have any

experience in real estate it's important

to note that real estate is valued on a

comparison by comparison basis the

estate is literally at the end of the

day just valued by comparing pieces of

real estate that have sold around the

piece of real estate that you are trying

to value there's things first you need

to find all the homes that have sold

within the past six months within a

one-mile radius or within these same

subdivision of the home that you are

trying to value you can't value homes

that have sold twenty miles down the

road because a lot of the value that

real estate holds is in its location so

number one make sure that you are doing

those things since you have maybe 10 or

12 homes to compare that I've sold

recently within your sub same

subdivision or within the one-mile

radius you need to start weeding

properties out and the first way that

you're going to do this is you weed them

out by their square footage size in the

real estate community 15 percent of a

deviation from the property that you're

looking at is generally an accepted

comparable so if the property is 15

percent below the property that you are

trying to value or 15 percent above that

is a good comparable you want to include

that in your comparison it's not a

comparable or it is 25% below or 30%

above the property that you're trying to

compare go ahead and throw it out and

move on to the next step which is going

to be start looking at the bed and the

bath of at home optimally you want to

compare homes that have these same

amounts of bed and baths so if it is a 3

bedroom and a 2 bath that is a camp

haribol now there's a little bit of

leeway with the bathrooms if you have an

extra half bath or maybe you have a -

compared to a one bath that is a

comparable thing that you want to watch

out for is bedrooms bedrooms are a big

indicator of price so you can't compare

a three bedroom to a four bedroom okay

so number five is you want to start

looking at the architectural style of

the home and the overall layout just

because you can't compare a brick ranch

or to things like a colonial and you

can't compare a postmodern to things

like a Spanish Revival also can't

pertain to the actual floor plan layout

if the floor plan layout is just totally

different in it's a totally different

style of house it can not be a true

comparable so by the time you've gotten

through these square footage you've

gotten through the bedroom in the bath

and you've gotten through the

architectural style you're probably

going to have around two or three

comparables and that is what you want

you will only want to have two or three

very solid comparables there there you

can judge some of the more nuanced parts

of the house maybe the conditions not

the best or maybe there's a hot tub of

the back or maybe there's a pool and you

can adjust your price from there point

to note here is that once you do get

down to those three comparables it's

more of an art than a science you could

take the average of them maybe if you

feel that the home is a little bit more

desirable than the others maybe you can

increase the price maybe if the home is

in poor condition maybe you would even

decrease the price that's my video for

today I let you guys enjoy this if you

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and as always thank you for watching