Knowing the Value of your Brainerd Lakes property is essential to several real estate ventures, including listing real estate for sale, investment analysis, property insurance, real estate financing, and the taxation of real estate. There are several factors to keep in mind when valuing a property. Unlike many basic consumer goods, real estate property value is usually realized over a significant period of time. The following four elements will largely determine the value of a property:

• Utility – the satisfaction of the new owner’s wants and needs

• Demand – The need for ownership, supported by the financial means to satisfy that want or need

• Transferability - the ease in which property ownership rights are transferred to the new owner

• Scarcity - the supply of properties in a given area

Previously, homeowners would often consult an appraiser or real estate agent to value his or her property. In order to determine the property value, the real estate agent or appraiser would evaluate three different “comps”, or comparable sales. They would access these comps via the Multiple Listing Service, known as the “MLS”.  The MLS is a database of all the properties in a given area that are currently listed “for sale,” are in the process of being sold (pending,) or already sold at any given point in time. Accessing this information was difficult without the aid of an appraiser or agent. However, with growing online technologies, accessing MLS listings is easier than ever.

In order to use comps to determine a property value, homeowners should review at least three properties that are similar to theirs, and have sold within the last six months. Factors to consider when comparing the similarity of another home include the number of bedrooms, the number of cars in which the garage was designed for use, the number of bathrooms, square footage, and whether or not a home has a pool.

Luckily, the days of hiring an expensive appraiser are well behind us. Thanks to our Brainerd Lakes Home Property Calculator, we can tell you the value of your Brainerd property. Simply enter your address in the search bar, and provide us with a few details about your property. We’ll contact you and let you know how much your home is worth. Brainerd home values are rising. Don’t you want to know what your home is worth?