Determining a Homes Worth
The real estate market is showing many signs of a comeback. Just this week home builder confidence reached a 6 year high, new home starts reached a 4 year high and overall consumer confidence in the economy has seen a surge. All be it a slow recovery, causing the United States Federal Reserve to keep mortgage rates low for the foreseeable future. With all the signs pointing to a real estate housing market recovery, that means that the value of homes will increase as more people look to buy, increasing demand.
So how do you determine your homes worth?
A homes worth is determined by a homes price, cost and value.
Price is idealy what the home is worth today, they way to determine price is by finding fair market value. Recently sold properties with similar size and condition help derermine price. Other factors such as location and surroundings can also effect price.
The value of a property is in the eyes of the perspective buyer. Do they have a special infatuation with the location? Do they want to be closer to their family, or work. Maybe the school of choice for their children is near the home. All these factors can play in important role in the “value” of your home. The value of your home can all depend on the buyers lifestyle, so its different for everyone. For example a person who perfers to take the bus to work instead of driving, would find more value in a home that has active bus lines, as opposed to a home with limited or no bus lines at all.
Sellers often believe their house is worth what they paid for it, including any improvements they’ve made to it. But, the reality is that a home is only worth what a buyer is willing to pay for it. Often times home improvements don’t always asmass a certain monetary value for a return. It merely keeps the home up-to-date with current market prices. The fact remains though, that your homes worth really lies in the buyer and how much they think its worth. The best thing to do is come up with a plan. Find a local real estate agent that will help you come up with a fair market value listing price, and let them find the right prospective buyers for your home.