1. What is the Home Value Calculation?

The home value calculation estimates property value based on comparable sales (comps) adjusted for property-specific factors. It provides a data-driven approach to property valuation.

2. How Does the Calculator Work?

The calculator uses the home value formula:

Where:

• \( Comps\ Average \) — Average price of comparable properties in USD
• \( Adjustment\ Factor \) — Property-specific adjustment (0.8-1.2 typical range)

Explanation: The equation accounts for differences between the subject property and comparable sales.

3. Importance of Accurate Valuation

Details: Accurate home valuation is crucial for purchase decisions, financing, insurance, and property tax assessments.

4. Using the Calculator

Tips: Enter comps average in USD and 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 many comps should be used?
A: Typically 3-5 recent (within 6 months) and nearby (within 1 mile) comparable properties.

Q2: What factors affect the adjustment?
A: Square footage, condition, age, location, amenities, and market conditions.

Q3: What's a typical adjustment range?
A: Most adjustments range between 0.9 and 1.1 (10% below or above comp average).

Q4: When is professional appraisal needed?
A: For mortgage lending, estate settlements, or when precise valuation is critical.

Q5: How often should valuations be updated?
A: In active markets, every 3-6 months; in stable markets, annually.