Did you ever wonder what a lender looks at when determining the value of your home? A simple price per square foot doesn't always work. Many factors enter into properly pricing real estate with location being one of the top items.

These nine items will give you an idea of how a lender determines the value of a property and how much money the lender will loan based on that value:

1. Type of property (residential, commercial, agricultural, condo, Planned Unit Developments, zero lot line, etc.)
2. Location
3. Area Zoning
4. Value Range
5. Neighborhood (homogeneous/heterogeneous)
6. Actual Age/Effective Age/Remaining Economic Life
7. Condition (repairs and predications)
8. Special clearances (code compliance, well and septic certifications, road maintenance, roofing, plumbing, electrical, structural reports)
9. Overall Marketability of Property

Each of these characteristics is an important piece of the puzzle. A CMA (Comparative Market Analysis) will help you determine if a property is fairly priced. Your Real Estate Professional is your best source for this information.

Source PropertySource