MBN Realty Professionals and our Broker have been performing competent and accurate pricing opinions for over 20 years. Whether you are buying or selling property, it is essential to know and understand the value of the Real Estate in the market at a specific point in time.
Value in Real Estate is largely governed by two universal principals. These are “The Principal of Conformity” and “The Principal of Substitution”.
The Principal of Conformity is based on the fact, when a market has similar and conforming Real Estate then that area will garner the highest possible value. (example: a subdivision with architectural controls and tract housing opposed to a neighborhood where residential dwellings are beside industrial or commercial buildings).
The second is the Principal of Substitutions which relies on the fact that a consumer will not pay more for a property that an equal property within the same market place. For example, two identical model homes in the same subdivision should sell for exactly the same price.
These two principals have given rise to the use of Comparative Market Analysis and Broker Price Opinions which essentially compare a subject property of similar properties that have recently sold where light monetary adjustments are made for their slight differences. This takes the emotion out of the evaluation process. Often times, cosmetic influences such as paint, countertops, decks, fences, water fountains, and similar items may make a property sell faster, but in the appraisal world, they have little to no effect on value.
Once you know where the market is for a particular property, you can make informed decisions as to the value, selling price, buying price, financing amount etcetera….
Let us perform an evaluation on your property today and you will be surprised at how empowering it can be!