How to Compare Two Houses – Things to Consider

October 3, 2020 Jacob Maslow

Leave no stone unturned when you compare two houses. Otherwise, you won’t know their correct value. Here’s what to keep in mind when buying or selling a house and the proper way to determine its value.

Two homes can seem quite similar but, if you search long enough, you will discover that they have several differences that set them apart. They may or may not be in the same area, one could be bigger than the other, they could have different utilities and improvements, etc.

Here are the factors you must consider when you compare two homes.

a. Neighborhood and Neighbors

Find out useful things about the neighbors and observe the neighborhood. Discover if it suits your needs and preferences. Does it seem to be kid-friendly? Is there a playground or a park nearby where you can spend some nice quality time with your family?

Try to figure out if the people who live there are friendly and sociable or not. Ask around, politely, or spend a couple of hours around the area and see for yourself.

b. Crime

To find out details about the crime level of a certain area, you should go to the local police department because the officers there can provide relevant information. That way, you can establish whether or not a specific area meets your safety standards.

c. Education

If you have kids, having good-quality schools nearby is a must. Do those schools offer what your child needs in terms of education level? How far are they from the house? All these things are important before you choose to purchase a house. They increase the house’s value.

d. Driving Distances

How long it will take for you to get to work? How near are the mall and the grocery store? Are these important aspects to your family? If the answer is yes, then a house that has all those things nearby will have a greater value compared to the one that’s located further away.

Bonus Tips! Know the Market

Research the market for both homes and see the insights of the current real estate trend. Factors such as resale values and areas are some of the most important things to take into consideration.

How to Determine the Value of a House

To determine the value of a home, you could easily use online tools and compare properties. Everyone who’s wondering whether or not a house is worth buying should learn how to properly calculate its value.

Use Online Valuation Tools

If you search online how much a house is worth, Google will return dozens of estimators. Many homeowners use one of those estimators that can be found on real estate sites, lenders websites, and more. These tools include property transfers, tax assessments, and deeds of ownership to determine a home’s value.

Use a Home Sale Proceeds Calculator

A home sale proceeds calculator is useful because it shows the amount a seller will remain with after the sale and once all the expenses, fees, and commissions were covered. A property’s sale price doesn’t represent the money the seller actually makes. For that reason, one must calculate the net proceeds.

Comparative Market Analysis

You can ask a CMA or a real estate agent for comparative market analysis. For listing purposes, the evaluation of an experienced agent will come in handy.

Another way is to hire a professional appraiser because home appraisal is required by lenders before they approve a mortgage. But, you can hire this type of expert to evaluate your home’s value.

Conclusion

Home value is important because it enables you to see what you can afford to buy or how much you should ask for when selling a house. Purchases and sales are not everything when it comes to a home’s value. Other factors like annual property taxes and insurance premiums are also essential.