1. What is the Home Valuation Formula?

The Home Valuation formula estimates property value based on comparable sales (comps) adjusted for specific property characteristics. It provides a more accurate assessment of a home's market value than simple averaging.

2. How Does the Calculator Work?

The calculator uses the home valuation formula:

Where:

• \( Comps\ Avg \) — Average price of comparable properties ($)
• \( Adjustment \) — Adjustment factor based on property characteristics (decimal)

Explanation: The equation accounts for differences between the subject property and comparable properties through the adjustment factor.

3. Importance of Home Valuation

Details: Accurate home valuation is crucial for buying/selling decisions, refinancing, property tax assessment, and investment analysis.

4. Using the Calculator

Tips: Enter the average price of comparable properties in dollars and the adjustment factor as a decimal (e.g., 1.05 for +5% adjustment). All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: How do I determine comparable properties?
A: Look for recently sold properties in the same neighborhood with similar size, age, condition, and features.

Q2: How is the adjustment factor determined?
A: The adjustment factor accounts for differences like square footage, bedrooms, bathrooms, upgrades, or lot size.

Q3: What's a typical adjustment range?
A: Adjustment factors typically range from 0.90 to 1.10 (10% below to 10% above comp average).

Q4: Are there limitations to this method?
A: This is a simplified model. Professional appraisals consider more factors and use multiple valuation methods.

Q5: Should this be used for official purposes?
A: For official transactions like mortgages, always consult a licensed appraiser or real estate professional.