How do I refine the value of a property?

There are multiple ways to refine the value of a property as it is shown to you and your clients.

If your changes are basic, such as updating the number of bedrooms, you can modify the Home Facts section on the Property Details page and immediately see the valuation adjust. Note that changes to these fields will result in a valuation change: Living Area, Bedrooms, Full Baths (not Partial Baths) and Year Built.

If your changes are more detailed, for instance if the property has substantial home improvements, go to the Refined Value tab on the Property Details page. Follow these steps to change the Estimated Home Value for the property:

Start by reviewing the basic facts of the subject property. If one of the property characteristics needs to be corrected, enter the updated value in the appropriate field. Changes to these fields will result in a valuation adjustment: Living Area, Bedrooms, Full Baths and Year Built. Please note that the Total Rooms field must not be less than the sum of Bedrooms and Bathrooms (full). For example, a property with 3 bedrooms and 2 full baths cannot be changed to have 3 total rooms, unless the number of bedrooms and/or full baths is also decreased. Also note that Refined Value calculations are based on public records data on a home, not MLS data, which can understate or overstate changes made to the home facts if there are large discrepancies between public records and MLS data.

You should also be aware that In a property that is less than 1,200 square feet, decreasing the number of bedrooms or bathrooms can actually increase the refined value, because it reflects a more usable home layout. The algorithm behind the refined value feature may believe, for instance, that three bedrooms makes a smaller home less valuable than two bedrooms.

Now, account for any home upgrades. Enter the type of home improvement, the date the project was completed and the total cost. Changes like upgrading a kitchen, shown in the dropdown menu, are calculated using the date of the improvement and information from Hanley Wood, a provider of housing development market data. The home improvement data are produced at a regional level, and refactored at the ZIP code level for the most accurate results. 

Enter "other" home improvements not listed by name. When there is no available choice for a home improvement through the drop-down menu, choose “other” and add a short description about the home improvement (up to 200 characters). The improvement will be added with the value you assign, and the initial cost will be depreciated over a 20-year period. The depreciation is based on the date the home improvement was added. 

Refine the value of a property based on needed improvements. Sometimes homeowners may need to repair their home to help you market the property effectively, and of course, achieve a successful closing. In those instances, you can “Refine Value Based on Needed Improvements” to explain the necessary repairs to the potential client, and show the negative monetary effect to the property's value.

Finally, use the sliders to customize the value based on the local market and conditions of the subject property: home exterior, home interior, lot size, view and privacy.

Note that a property must have a number entered for Living Area from public records data (not listing data) to accurately refine its value. For example, if you modify the number of Bedrooms, but Living Area is missing, the refined value will be incorrect. Enter and save a Living Area before refining value. 

You can also modify the Estimated Home Value using our Comp Analysis tool. Learn more here: http://support.narrpr.com/entries/22208412-what-is-the-comp-analysis-tool-and-how-do-i-use-it-to-adjust-a-property-s-valuation

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