TL;DR – Yes

The Market Price Analyzer, as we refer to the PC Home Prices algorithmic display, presents a projected value range for a property of the specified characteristics, such as bedrooms, square feet, and year built. The price range is labeled at the graphic base. The purple curve is the price bell curve and the green curve shows the percentage ranking for this property compared to others in the similar neighborhoods. Typically, the price bell curve, the purple one, is not the typical bell curve people may remember from school when the teacher graded on "a curve" as discussed at Wikipedia. Instead, a property price distribution is usually "right skewed". But I digress.

There are many factors that determine a home's market price, such as location, condition, style, furnishings, architecture, marketing, agent skills, views,... To complicate the calculation, these factors are interdependent in non-linear ways and do not scale linearly. Algorithmically, we examine every transaction over many years in the Park City market and integrate our local real estate knowledge into the process to estimate the price range for every property for which we have enough data. Mathmatically, the purple curve should contain all possible price points for the property over 95% of the time, often more than 98% of the time. There are always exceptions.

Notice the slider below the purple and green graphic. Use this slider to select the appropriate $/sqft. There are too many factors and too few transactions for an algorithm to accurately estimate the value of a property in most cases. The slider enables you to utilize your judgement to select how the selected property rates compared to similar properties and view the implied market value.

Give Andy a call at 435 565-1323 to discuss in more detail. Or use the form below to send us a question. Estimating property prices is a fun and fascinating challenge and we are always happy to share ideas.

Yes. The model generation process checks Market Price Analyzer estimations against all recent transactions and incorporates changing trends into the estimation algorithm. We publish one of the factors used to correct for current market conditions on our Park City House Snapshot page as the Sentiment Index. You can read more about this metric at What is the Park City Market Sentiment Metric?

A home’s value can be estimated through various methods, including free online valuation tools, appraisals, or comparative analyses conducted by real estate agents. Online tools typically generate estimates based on local transactions and public data. However, for a more precise valuation, a real estate professional can assess your property’s condition, local market trends, and other factors.

The most prevalent method for determining home value is a comparative sales analysis. This approach uses recently sold homes, similar to yours in size, age, and condition, as a baseline for calculating your home’s worth. Any unique features of your home, such as an extra bedroom or an aging roof, are factored into the calculation.

Data for this analysis can be gathered in several ways. Online tools pull from public records, real estate transaction data, and user-provided property updates. An algorithm then processes this data to provide a real-time valuation. Real estate agents can access local MLS comps and conduct property walkthroughs for a more comprehensive comparative market analysis (CMA). Appraisers, on the other hand, work from the Uniform Residential Appraisal Report and physically measure the property during an onsite visit to ensure the accuracy of public records.

The value of a home is influenced by a multitude of factors. Some are external, such as a booming stock market or a great snow season that draws new home buyers, proximity to parks and trails, or the presence of local amenities like ski resort, Main St in Park City's Old Town, grocery stores. Market conditions, such as a low inventory that boosts demand for homes, can also enhance your home’s value.

There are also factors within your control that can add value to your home. Our experience indicates that enhancing your home’s curb appeal, fresh paint and carpet, and upgrading cabinet finishes improve the market attractiveness for your home. Larger upgrades can also add value, but it’s important to consider the return on investment. Regular maintenance over time keeps the house in prime condition, which can positively impact its value by showing potential buyers took great care of the home.

To maximize your home’s value, consider listing it during the optimal selling season for Park City. Efforts to clean, declutter, and stage the home can also make a significant difference, creating a positive impression on potential buyers.

Property value refers to the estimated worth of a residential property, typically determined by factors such as its size, location, condition, and the current real estate market. It’s an important concept in real estate as it can influence decisions related to buying, selling, refinancing, or insuring a home. The value of a home can fluctuate over time due to changes in the market, renovations, or alterations to the property or its surroundings. Fair market value refers to the price that an average or reasonable buyer would spend on a house when there is no existing relationship with the seller, and no extenuating circumstances endearing the buyer to that particular house.