1. What is the House Value Formula?

The house value formula estimates property value by multiplying the average of comparable properties (comps) by an adjustment factor that accounts for differences between the subject property and the comps.

2. How Does the Calculator Work?

The calculator uses the house value formula:

Where:

• \( Comps\ Average \) — Average price of comparable properties (USD)
• \( Adjustment\ Factor \) — Decimal multiplier accounting for property differences (typically 0.8-1.2)

Explanation: The adjustment factor accounts for differences in size, condition, location, and features between the subject property and comparable sales.

3. Importance of Accurate Valuation

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

4. Using the Calculator

Tips: Enter the average price of 3-5 comparable properties in USD and an appropriate adjustment factor (0.8 for inferior properties, 1.0 for equal, 1.2 for superior).

5. Frequently Asked Questions (FAQ)

Q1: How many comps should I use?
A: Typically 3-5 recent sales (within 6 months) of similar properties in the same neighborhood.

Q2: How do I determine the adjustment factor?
A: Consider differences in square footage, bedrooms/bathrooms, condition, upgrades, and location.

Q3: What's a typical adjustment range?
A: Usually between 0.8 and 1.2, but can vary based on market conditions and property differences.

Q4: Does this work for all property types?
A: Best for single-family homes. Apartments and commercial properties may require different valuation methods.

Q5: Should I get a professional appraisal?
A: For important financial decisions, a professional appraisal is recommended as it includes physical inspection.