Home Selling in New Berlin>Question Details

billray784, Home Owner in New Berlin, WI

Is there a industry-recognized standard that describes the major factors in the value and/or price of a home and their relative impact?

Asked by billray784, New Berlin, WI Mon Dec 24, 2012

I know that it's very difficult to put a specific percentage of how things like traffic volume/speed impact home values, but is their a report/formula that prioritizes the various factors (low, medium, high or a scale of 10)??

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5
Del Darga’s answer
Yes, there is a report that can be done by a REALTOR called a comparative market analysis (CMA). This report will give us a snapshot of what your home is worth in a specific neighborhood in regard to price range, square footage, condition and days on market. From this we can make adjustments up our down depending on other facts found during our inspection of the property.

Another option would be to hire an appraiser to do a detailed appraisal of the property at a cost of $300 to $400, CMA's should cost you nothing.

Please let me know of you have any other questions.
1 vote Thank Flag Link Mon Dec 24, 2012
Fantastic...thanks, Del. We have been working with a local realitor on getting statements on general tendencies - "with all factors being constant, most home buyers find a property more attractive that has less traffic (less safety concerns), which could relate to a faster sale and/or higher selling price." I'll follow up on the CMA suggestion. thanks! Happy new year
Flag Mon Dec 31, 2012
Bill,
Examine in detail the county property appraisers database.
It is very likely you will see a 'unit value' assigned that when compared to similar and different properties will reflect the very value adjustment you are seeking. The unit value will be applied to the property size and the development value stacked on top of that calculation.
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It is easiest to first observe this pattern using golf course fronting or big water view properties. When you spot the pattern you can then apply it to high volume traffic locations. There is most certainly a formula that is buried in the 'disclosure' links on the websites.
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When you have spent sufficient hours pillaging and plundering the appraisers and assessors database you will realize these numbers are reflected in the compilation of a value, some number that may be labeled, "Market Value," "Just Market Value," and any variation of similar words that are universally accepted as being as relevant to true values as Z's guesstimates.
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IN the end the formula will not provide the satisfaction you are seeking in regards to 'TRAFFIC."
There is an obvious solution. That is simply completing a market analysis. A market analysis will produce the 'real value' numbers. You know, the real numbers - what a willing seller and able and willing buyer agree upon regarding the value of real estate.
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So, may I ask, why are you wishing to make this much more difficult than it needs to be?
Call the folks who do this many, many, many times a month.
1 vote Thank Flag Link Mon Dec 24, 2012
Thanks Annette. Myself and a group of neighbors are fighting a change made in the traffic flow within our small subdivision, that has resulted in a significant increase of traffic on our street and a significant decrease on the neighboring streets. We probably should hire a professional to help but we're trying to minimize our expenses. We've focused our small budget on mailers, flyers and petitions up to this point.
Flag Mon Dec 31, 2012
I think the answer to the first part of your question, the 'major factors in value' is -yes-.

You are correct on the second part about putting a specific percentage. If you are referring to how much traffic one has to deal with to get home and the distance/time to get there, there is an impact. It's probably not studied in the way you want but every buyer takes that under consideration. If I have a buyer who is thinking about buying an extra 1/2 hour away from town because the prices are 20K cheaper, I ask them to figure the cost of transport and the time lost and how that money could be put into a home and family time instead of a gas tank and drive. A person can save close $40k purchasing power by saving $200 in gas. If you are asking this because you are considering where to purchase, I would take a simple formula of $5 per $1,000 of purchase price ($40 = $200) and consider what you want to spend the $200 on - a house or gas. If you value a more rural location and the travel does not bother you and you would be happier, the $200 is better spent on travel expenses.
0 votes Thank Flag Link Wed Dec 26, 2012
Mornin' Lori...so, basically it's a very subjective and personal/individual thing. High traffic is generally less desireable but it's impossible to quantify the impact, because there's so much variance in the importance that different buyers place on traffic versus all the other factors that go into buying a home. In general though -- with all other factors being the same -- would you agree that most buyers prefer property with less traffic and there is "some" value in that??
Flag Mon Dec 31, 2012
The answer to your question is, "No."

Best regards.
0 votes Thank Flag Link Wed Dec 26, 2012
Thanks, Mack. I didn't think it would be that easy
Flag Mon Dec 31, 2012
I wish it would be as easy as using an established so called formula.... but there it goes not everything works with a formula, for example, what is the formula for finding the perfect wife or
husband for that matter. Any idea?????

So really the same goes for home, Realtors, who have done business and previewed a lot of homes in a certain area, have the expertise and access to comparable homes, so that they can take inventory of a certain homes size, rooms, floor plan, additional rooms and amenities, lot size, location etc. etc.
and compare those and the age of the home and architecture and quality of construction to similar homes. Since each hose is most of the time somewhat different, Agents will be able to make the
necessary adjustments in establishing the current market value, i.e. reasonable market friendly
asking price and the current potential negotiation % equal to potential sale price. The adjustments
will be value adjustments up or down depending what the home offers in addition or lacks.

An Appraiser will do pretty much the same, except that often they are not as familiar with a certain
style of home, or area, or they have not seen a lot of homes in that particular market place.....

Good luck to you.

Hope this helps...

Most Sincerely yours,
Edith YourRealtor4Life and your Chicago and Northern Illinois
and RElocation Expert
Working always in the very BEST interest of her clients
at @Properties North Shore
Edith speaks French, German, Spanish & more
Get to know Edith and her Service her website is
http://tinyurl.com/YourRealtor4Life
EdithDoesItRight@yahoo.com
0 votes Thank Flag Link Mon Dec 24, 2012
Thanks Edith...this is consistent to what we were told locally. Take care.
Flag Mon Dec 31, 2012
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