Real Estate Valuation Mistakes You're Making That Cost Big Bucks!
Ever felt the sting of realizing you could’ve gotten a better deal on your home?
Well, at Measured Home Services we have heard this one too many times in the realm of real estate valuation.
And let's be honest, in the world of property, those small mistakes can end up costing you thousands.
Buckle up as we take you on a journey through some of the most common pitfalls we've encountered in real estate valuation and how to dodge them like a pro.
Getting the value of your home right isn't just about slapping a price on it based on what you FEEL.
It's a blend of art and science combined with a deep understanding of the Tulsa market - all of which are key components of an effective real estate valuation.
It’s about striking the right balance and avoiding costly pitfalls.
Let us share some of the insights we've gathered over the years.
Overestimating Renovations' Impact
The Glitzy Kitchen Fallacy
Don’t become disappointed after spending a fortune redesigning a kitchen with that fancy Italian marble only to find out it added a fraction of that cost to your home value.
Not all renovations translate directly to increased property value.
Especially if they're too personalized or not in line with what the Tulsa market demands.
Expert Tip: When thinking renovations, aim for ones that resonate with a broader audience. Think practical, not extravagant and niche.
Ignoring Market Comps
Customers who love their home so much they feel it is worth way more than the market dictates.
If the neighbor's home is similar and sold for much less just a month before, this could be indicative of the current market. Always ensure you're in tune with the local market pulse.
Expert Tip: Dive deep into recent sales of homes like yours in Tulsa. They're the most reliable indicator of your home's current value. Make sure you are comparing apples to apples.
Emotional Pricing
Your home has witnessed birthdays, anniversaries, and countless memories. It is natural to feel attached.
But remember, while it's priceless to you, there's a market value to it that's driven by data, not emotions.
Expert Tip: Think like a buyer, not a homeowner. Detach emotions from the equation.
Not Accounting for Property Wear and Tear
Every home ages, just like people.
It's natural.
But a home that's been well maintained and taken care of will reflect that appeal.
Roof leaks, tired carpet, worn paint - they are all taken into consideration when determining an opinion of value.
Expert Tip: A little love goes a long way for your home. Regular touch-ups and maintenance can help maintain your home’s market value.
Overlooking External Factors
Say your home is perfect in every way, but is situated on a busy road. It is imperative that the appraiser gives this consideration during the appraisal.
It’s these little things that can sometimes slip your attention, but may influence a valuation. The appraiser will attempt to find comparable sales that share a similar location or view.
Expert Tip: Step outside your home. Think about your location, etc. Everything plays a part.
Neglecting the Expertise of a Local Appraiser
Online tools can be great.
But they don't always get the nuances of our lovely Tulsa.
We completed an appraisal for a young man looking to buy a recently renovated home. The home was priced for sale by owner and the buyer felt uneasy about the purchase price based upon his own research. Our appraisal revealed the value differed by over $100,000 when compared to online resources. In addition to the value difference, our measurements confirmed the square footage was incorrectly reported.
Expert Tip: There's no substitute for local expertise. Trust a seasoned hand (like our appraisers at Measured Home Services) who know the ins and outs of Tulsa's dynamic market.
Failing to Challenge Inaccuracies
During an appraisal review one homeowner discovered that we missed a half bath on site.
It was an honest oversight, and we adjusted the value accordingly.
Remember, an appraisal is a detailed process, but it's not infallible.
Expert Tip: Be proactive. If something feels off in your appraisal report, ask for clarification.
Getting an accurate assessment of your homes value is crucial, especially in a competitive market like Tulsa.
By sidestepping these common missteps in real estate valuation, you're setting yourself up for success (and some extra dollars in the bank).
Remember, at Measured Home Services, our goal isn't just about numbers. It's about empowering you, our Tulsa homeowners, with accurate real estate valuation insights to make informed decisions.
Looking to dive deeper? Schedule Your Appraisal with our real estate valuation experts! Let’s ensure your home gets the valuation it truly deserves!
