Market Valuation Analysis

Markets - 10 Minute Read

1/15/2024

Key Points

When to Use

• Help select a price for listing your home
• Choosing a price to offer to purchase a property
• Deciding possible price gain from improving your place

How to Use

1. Enter an address at What's my home worth?
2. Move a slider to choose a ranking for a property
3. Review the matching price

The User Interface

• Property Rank: comparative ranking of property to similar homes
• Selected Price: price correlating to the Property Rank
• Price and Rank Curves: curves showing the price range and comparitive rankings
• Slider: used to select the Property Rank and Selected Price

Checking a Home's Value

How can you easily determine the value for a home you want to list or put in an offer to buy? How much more is a house worth if it has been completely updated to the latest styles? Park City Home Prices’ Market Valueation Analysis helps you find a home’s value with flexibility and ease. Though just one possible input to determining a home's market value, it's a quick and easy way to get started.

Home Price Estimate

The goal of our Market Valueation Analysis is to clearly express the current market value range for a Park City property.

The home price estimate is influenced by many factors, such as the neighborhood, the age, the style, the design, the condition, the marketing, the time of year, the goals of the seller and the buyer, the weather, agent negotiation skills, and the time on market. These factors can create a wide variation in the value of similar properties, from an old house with poor location and original, worn, dated materials, to a similarly aged home totally updated with modern aesthetics and ideal location.

The Market Valueation Analysis provides an easy to use interface for a user to select the appropriate valuation estimate based on a holistic view of the property relative to similar homes.

Here is an image of a Market Valueation Analysis for a Jeremy Ranch single family home. The analysis contains a lot of information and we are going to break it down so you can fully utilize its capabilities.

It’s Free – no cost, no registration

The market valuation analysis is free and presents results immediately. Park City Home Prices does not require you to register or share any personal information before viewing results.

Our analysis is different from the valuation estimates provided by Redfin and Zillow. The Market Valueation Analysis presents what we calculate to be a possible price range for a property. Our simulations show our valuation range contains actual sales prices 98% of the time.

Where to View an Estimated Value

Park City Home Prices makes an analysis available two ways:

1. Home page – enter an address where it asks “What’s my home worth?” This allows you to analyze properties regardless if they are currently for sale.
2. Active property listing – active listings show information about homes current on the market, such as sales price, pictures, location, square feet, and more. Listings are found while exploring our communities, reading our guides, or on some articles.

If you want to play, click on this link for a Black Rock Luxury Condo without entering an address.

Or, you can use your address if you own a Park City home. Or find an interesting property on Zillow or Redfin and enter it’s address at Park City Home Prices.

Determine a Home's Value

Using the Market Valueation Analysis is straight forward though a lot of information is presented. The process I use is:

1. Move the slider to select the appropriate Property Rank. This will say something like: Better than 52% of similar properties So just set how this home compares to others you have seen.
2. Read the selected price.

Below the green and purple curves you will see the model's estimated price range. In our example, the price ranges from $2.7M – $5M.

Let's break it down.

Property Rank

When you look at many similar properties in an area, you develop a sense of what makes a house more or less attractive. The Property Rank metric captures this sense of comparison. It shows how a house ranks among its peers in the market.

The Property Ranking is expressed as a percentage between 0% and 100%. It shows how much better or worse a property is than other similar properties in the area. For example, a value of 60% means that the property is better than 60% of similar properties. The value is shown textually in the field labeled “Rank”, and it is expressed something like “Better than 60% of similar properties”.

The Property Rank is also expressed graphically using a green curve. The curve shows the distribution of values for similar properties, and the position of the current property on the curve. The higher the point on the right, the better the property is, and the closer it is to 100%. The lower the point on the left, the worse the property is, and the closer it is to 0%.

You can adjust the Property Rank using a slider located below the graph. The slider allows you to change the value of the property based on your personal preferences and opinions. You can slide it to the left to lower the value, or to the right to increase the value. The graph and the text will update accordingly, and show you the new value and rank of the property.

Here is a simplified valuation analysis showing the Property Ranking elements to help illustrate how the Property Rank metric works.

Move the slider – it's a working component so please experiment.

Selected Price

Property Rank is great but what you are likely interested in is the selected price. Initially, the selected price is the median price, which correlates to a Property Rank of 50%. The price is shown in green next to the “Price” label and read something like “$2,805,000 @ $550/Sq Ft”.

Big blue numbers will also display the price on Property Analysis pages that are shown after entering an address on the home screen.

The Selected Price is not a fixed or absolute value, but rather a flexible and adjustable value. You can change the Selected Price by using the slider below the graph, which also changes the Property Rank.

The range of values is represented by a purple bell curve. The bell curve shows the distribution of values for similar properties, and the likelihood of each value. The height of the curve indicates the prices that are more likely, and the ends are lower and less common. The Selected Price is marked by a big green dot along the curve surface.

Here is a simplified valuation analysis showing the Selected Price elements to help illustrate how the Selected Price works.

Move the slider – it's a working component so please experiment.

What is the Estimated Home Value?

The Market Valueation Analysis is a tool that helps you find the fair market value of a property in Park City. The tool gives you a range of values for a property, and lets you choose a specific price based on your preferences and opinions. The rule is “Select the rank and read the price”. Here is how it’s done:

You move the slider below the graph to change the selected rank and price. The rank shows how much better or worse a property is than other similar properties in the area. The price shows the corresponding value for the property based on the data and the rank.

First, find the rank that best reflects your evaluation of the property. You can do this by comparing the property to other similar properties in the area, and considering its characteristics and location.

Then read the selected price that matches the rank that you chose. The selected price is the price that statistically matches the Property Rank.

And to put it all together, here is a fully functional Market Valueation Analysis user interface.

Move the slider – it's a working component so please experiment.

A Starting Point to Determine a Home's Value

The selected price is based on a statistical model Park City Home Prices generate for each property in Park City. This price should be used for relative comparisons and as a single input to the complex pricing strategies for listings and offers.

Personally, I find it quick and helpful – and I also pull comparable sales, examine active and pending listings, check additional internal models we maintain, track the overall market, and many other inputs.

Pricing is hard and the Market Valueation Analysis is a fun and fast first step.

Putting Your Home Valuation to Work

Once you are comfortable using the Market Valueation Analysis, you might be wondering how to use it in practice. Whether you are buying or selling a home in Park City, the selected price can help you make smart and strategic decisions. Here are some ways you can use the selected price to your advantage:

• If you are selling a home, you can use the selected price to set a realistic and competitive listing price for your property. The selected price reflects a possible market value of your property based on the data and your preferences.
• You can also use the selected price to adjust your listing price if the market conditions change or if you are not getting enough interest from buyers.
• If you are buying a home, you can use the selected price to make a reasonable and attractive offer for a property. The selected price shows you the fair market value of a property based on the data and your preferences. You can also use the selected price to negotiate a better deal with the seller or to walk away from a deal that is too expensive or risky.
• If you are preparing a home for sale or purchase, you can use the selected rank and price combination to decide whether to stage, paint, or update your property. The selected price shows you how much your property ranks among similar properties in the area. You can use the slider to see how changing the rank affects the value of your property. You can then decide whether it is worth investing in improving your property or not.

The Market Valueation Analysis is a free, fun, and innovative tool to help understand the market value for a property but it is just one input to making an informed pricing decision.

Final Words

That’s a quick introduction to our freely available Market Valueation Analysis service at pchomeprices.com. We discussed how to use the “What’s my home worth?” on the home page to access an analysis, the components of the analysis user interface, and examined two townhomes at opposite ends of the valuation curve. We also showed you how to adjust the rank and the price of a property using the slider, and how to interpret the graph and the text.

We hope you find the Market Valueation Analysis service useful when buying and selling property in Park City. Please explore the Park City Home Prices site and let us know what you like and what you would like to see added. We value your feedback and suggestions.

So use our free service to check What's my home worth? No registration or personal information required.

Slope Style Realty is a full service Park City real estate team and we would love to help you the next time you are buying or selling Park City real estate. We have the expertise and the experience to guide you through the process and make it smooth and enjoyable. Take care and we hope to see you around town.