How is Value Determined?


In residential real estate, value is determined by what buyers are willing to pay. There are two ways to do this: one is a Comparable Market Analysis and the other is an Appraisal. They gather and compare the same information, but they require different licenses; either a real estate license or an Appraiser license.

The information that is gathered is usually other properties in the same geographic area that are for sale now (active listings), properties that were for sale but are not now (expired listings) and those that have recently sold (Sold listings.) The most important are the SOLD listings as this will give the most accurate picture of what buyers are willing to pay for similar properties in that area at this time.


If one were to look at ten to twelve properties in their area that are similar to their own that have recently sold, they would get a pretty good feel for the value.
It doesn’t matter, it HAS never mattered and it never WILL matter how much money the buyer paid for the property or how much they improved it. It is only worth what a willing buyer will pay for it. That is determined by looking at the comparable sales.


Check out this article on Ways to Boost Your House’s Value
Location: Walker Texas Team

Comments

Post a Comment

Popular posts from this blog

How to Get the Home You Want

Image
Buying a new home can be both exciting and stressful. If you’re thinking of moving to Texas for the first time or moving to a different area in Texas, there are some things you should do to improve the odds of getting the home of your dreams. Get Familiar & Strengthen Your Credit Buying a home is going to be one of the biggest financial decisions of your life, and you want to make sure you have a good credit score. The higher your credit score, the better interest rate you’ll receive. It may seem crazy, but just a .5% difference in a mortgage rate can mean tens of thousands of dollars over the life of your loan. You definitely want that extra small percentage taken off your rate if you can get it. In general, you’ll get an average rate with a 650-700 credit score. Any credit score higher than that and you’ll have a great chance of getting a nice reduction. You’ll want to sit back and wait to buy a home if you have a score lower than 650. It may be tough, but down th
Read more

7 Simple Tips to Increase Your Home’s Value

f you’re planning to sell your home, you may be considering updates to get it market-ready. Here are seven ways to instantly increase value. Replace Your Mailbox Small things like the condition of your mailbox and your yard have big impact on curb appeal. Clean out flowerbeds, powerwash stains on the driveway and sidewalk, replace house numbers with shiny new ones, and remove grass and accumulated muck from street gutters. You never get a second chance to make a first impression. Get Decorating Advice from a Pro The personal touch you’ve put into the interior of your home is part of its charm, but potential buyers may not see it that way. Meet with a realtor (who may consult with you for free) or an interior designer (who won’t) for advice on how to make the inside of your home most appealing. Create a File for Paperwork If you have the manuals for appliances, energy audits from utility companies, specific color swatches for the paint you’ve used, and invoices fo
Read more

Why It’s a Great Time to Both Sell and Buy a Home in Central Texas

Selling a home is one of the biggest decisions a homeowner can make. There are a number of factors that are making many homeowners realize that now is a great time to sell their current home, while it’s also a great time to buy again. This is because the residential real estate market is once again thriving. Reports reveal large numbers of motivated buyers and sellers are interacting in the market. This means that the prices for homes have moved up by up to 30% over the past year in some markets. Some savvy real estate investors have admitted that they have never seen a market that has turned so aggressive since the 1970s. Market demands are also up by 25% in a number of states across the country. Investors are willing to part with their money to make sound buys. This is good news for the sellers who have been in the dark for decades, especially when it comes to favorable rent prices. 52% of correspondents that were interviewed in a survey said that this is the time to
Read more