When I walk around a home and do my video and preview I have a check list with me and ask the same 16 questions about every home I go to see. Each question allows me to rate the home on a scale of 1 to 5, where a 1 typically means the home is substandard or needs improvement, and a 5 means the home has some value added feature. The scores in the middle of the range measure degrees of value along some vector that buyers consider important. So, I ask 16 questions, each one allowing a point rating one to five. The highest rated home would have a score of 80, (61 X 5) the lowest rated home would have a score of 16. I made the scale so that a three bedroom two bathroom move-in ready home would score between 40 and 50 points. Most homes under $300,000 are not going to score that well, but homes that score 30 points or more are generally the best of what you find for less than $300,000. Homes that score down in the 20’s or high teens, are fixers or in need of substantial rehabilitation.
The scoring of homes breaks down as follows:
On a scale of 4 to 20 in each division:
Yard and Landscaping
Fixtures and Appliances
Every home gets rated against the same scale based on how each home objectively qualifies in quality and condition for a series of questions that scope out each of the four divisions. I put everything on a spreadsheet, and every home is given a series of numbered codes that remind me of the condition, even when I see dozens of home every month.
So, how did this home, which was completely remodeled and rehabilitated by a contractor two years ago:
Yard and Landscaping 9
Interior Features and Condition 10
Floor Plan 7
Fixtures and Appliances 17
The yard, at 1/2 acre, is flat, but it has been neglected, so it scored just hair below average, the condition of the home is average, the floor plan is where a 3 and 1 loses value, but it does exceptionally well on the fixtures and appliances which are all less than three years old. Use this same scale to rate a dozen homes that are all similar in features and neighborhood, and get a powerful analytic for comparing value. Call me to discuss!