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

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