What is the best way to calculate the value of a house? My agent tells me the following:

Asked by Rahul Verma, Natick, MA Sun Jan 27, 2008

My neighbours house is on sale. The only difference is that my house has about 300 sq ft of finished basement. Other than that both houses are identical. My agent tells me that I should add only $15,000 for my basement to the price of my neighbour.

I feel like I should be taking the price per sq ft of my neighbours house and multiplying it by my sq ft. Which come a lot more than $15,000

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Lizbeth Uribe…, Agent, Laredo, TX
Sun Jan 27, 2008
I've actually just done that with one of my listings. there is also a difference of a few sq. ft. of living area between my listing and another firms, on the same block. I've reduced ours, just under the other one, so that theirs, will sell ours! It's working too! Theirs has been in the market longer than ours, and ours has been showing regularly since we reduced it. I'm confident we'll have it sold soon.
1 vote
J R, , New York, NY
Sun Jan 27, 2008
In my area, finished basements add about 15-20,000 to an appraisal, according to appraisers I've spoken to. In this market, the finished basement may be what sells your home, but not for more money.
2 votes
Gerry Bourge…, Agent, Leominster, MA
Mon Jan 28, 2008
You will find that an appraiser will not give a finished 'basement' the same price/sq. ft. value as 'above grade' living area (especially in this market). What that real $/sq.ft. number is can only be determined by a paired sales analysis. But even that would need to take into account Very recent sales to have any accuracy, as this market is still very volatile. Depending on what your market conditions are, pricing strategy is Key right now. Also, remember that your neighbors house is For Sale and not SOLD. Only when it sells will the 'value' be known. Hope it helps.
1 vote
James McHugh, Agent, Littleton, MA
Mon Jan 28, 2008
There are many factors in pricing a home.....call me if you need some help but only after your listing agreement expires...I do not want to cause any conflict with an ongoing contract and others should respect this as well.
Web Reference:  http://www.JayMcHugh.com
1 vote
Team Forss R…, Agent, Temecula, CA
Sun Jan 27, 2008
This isn't the market for that. You should follow your agents advice. As a matter of fact, depending on how long your neighbors house has been on the market, you might even want to price it the same.

If their home has been up for awhile, your home has an added 300 sf which may be of perceived value to someone which means yours would sell first. Nothing better then using the neighbors property to get yours sold! You might save months of marketing time and then that difference is a wash.
1 vote
Mary Condon, Agent, Boston, MA
Thu Sep 3, 2009
Hi Rahul -

Best way to calculate the value of your home is:

1. Choose an agent that knows how to do a thorough analysis of the comps - additionally - they should to go out and preview homes which your would be competing with. Then, once the price in narrowed in on - choose the price JUST below the most recent SOLD/Closed comp.

2. I ALSO hire and pay for an independent appraisal. WHY? Ultimately it is the banks appraisal which trumps everything. ALSO - you may put the appraisal out for buyer review to further validate the asking price.

3. Make sure that the Realtor you choose is excellent at marketing your home by using Social Media Syndication, in additional to traditional methods of marketing, this is key to exposinhg your ome to the max number of potential buyers...

If you would like to learn more its easy - just give me a call .... It's my Pleasure

Mary Condon
0 votes
Lynn Hargrave, , Hopkinton, MA
Fri May 29, 2009
In such an unpredictable market the only predictor of value is a ready, willing and able buyer. If your neighbor's home is sitting without showings that is your benchmark. I agree that you should price it the same and let your finished basement be the dangling carrot that sets your home apart. Remember, buyers want a deal in this current market.
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