How Much is That Home Upgrade Worth?

The ability to accurately price a property for sale is arguably a listing agent's most valued skill. For that, REALTORS rely on their local know-how and experience, as well as a host of tools and software, including RPR's flexible CMA tool and RPR Seller's Reports.

But when it comes to making tweaks and adjustments, how can you refine value based on upgrades made or repairs that need to be made? RPR's Refine Value Tool is the perfect solution.

The RPR Refine Value Tool and Today's Market

Today's market is beyond hot, coupled with a severe lack of inventory. While many sellers are still making upgrades and repairs for even more ROI, others know that homes are going above asking and that selling "as is" won't necessarily affect their marketability.

Another tricky part of the equation is that during the height and onset of the pandemic, many people put money into projects (mostly exterior) and remodels (mostly kitchens), because they knew they'd be spending a lot of time at home! This made their already valuable homes even more desirable. As such, homeowners are sitting on gold mines and being pushed off the fence and into this heated seller's market.

How can you accurately price a property with these factors in mind? RPR's Refine Value tool allows REALTORS® to determine the value of a home based on property characteristics, home improvements made (or not), and market conditions. Here's how it works:

Refine Value: Adjust Basic Facts

Sometimes public records are out of date and don't reflect the correct number of bedrooms or bathrooms. You can easily update public record basic facts to refine the value.

• If a field is empty or shows a value of zero, entering data will not change the value because there is no baseline available to refine.
• Sometimes changing a basic fact will decrease the value. For instance, adding a bedroom without increasing the square footage may be seen as a negative by the system, in turn decreasing the estimated value.

Refine Value: Home Improvements

Whether it's a simple "fix" like a new automatic garage door opener, or a major kitchen remodel, it's great to be able to show sellers what they can get back for their investment. Home improvement values are calculated by project and region and are amortized. Choose from a list of improvements or add your own custom home improvement. This data is provided by Zonda and is updated annually.

• Click on the downward arrow to open the first drop-down menu. Select an improvement from the list or click Other to add your own custom improvement. If you selected Other, enter a description in the box that appears.
• Click the downward arrows in the second and third drop-down menus to select a month and year that the home improvement was completed.
• Select the downward arrow in the last drop-down menu and enter the cost of the home improvement.

Refine Value: Needed Improvements

On the flip side of makeovers and rennos is repairs and improvements. With sellers currently in the driver's seat, many of these common fixes, such as replacing a roof or new flooring, are not getting done. And although that may not impact the final closing price, you still need to know how to bake it into your valuation. To decrease the estimated value and identify an issue with the property:

• Enter a needed improvement in the first field.
• Next, enter your own estimated cost to complete the improvement in the second field. Click the Add button when finished.
• The total cost that you entered will be deducted from the estimated value.

Refine Value: Market and Home Conditions

The temperature of the current market and the current condition of a property can certainly impact the price. RPR makes it easy to adjust for both with slider controls. Simply move the sliders to change the estimated value based on the local market and the condition of the subject property.

Finely tuned valuations

RPR's property pricing techniques, including the Refine Value tool, should be a part of every REALTOR's tool kit. The ability to adjust and fine-tune property pricing is key to presenting a winning listing presentation and proving your value to clients. Start refining home values with RPR today!

To try it out or get started, visit narrpr.com.

To view the original article, visit the RPR blog.