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What is the True Value of a Home?

What is the True Value of a Home?

 

house value

 

This is the question that everyone wants answered. How much is my home worth?

Or, what is the value of the home that I am buying?

 

The reality is that the value of a home is a moving target. There are many factors that impact a home's value, but the main criteria are:

1. Location

2. Condition

3. Comparable market sales

Let's quickly look at each factor. First is location. Is your home in an area that appeals to many buyers? Is the lot level or sloping? Is it close to shops, or far from the nearest grocery store? Is the view appealing, or are there eyesores on the neighboring properties? All of these issues have an impact on value.

Next is condition. In my market area (Central Massachusetts), buyers either want a home in move-in condition at a great price, or a home that needs repair at an even greater deal. Updated homes sell more quickly and usually for a higher price. Buyers want to see fresh paint, new appliances, no wallpaper, clean flooring, and a well-maintained lawn. The roof, plumbing, and heating must be in good condition. If not, the value quickly falls.

Lastly are the comparable home sales. A home's value is greatly impacted by sale prices of similar homes nearby. Note: A similar property that is currently active on the market has no impact on another home's value. It must be a property that has sold.

Many people will use sites like Zillow to try to figure out a home's value. This may be a good starting point, but even Zillow has a margin of error.  Zillow is a computer program that obtains information from a variety of data sources.  It does not know if a property has beautiful views or an outstanding kitchen.  Zillow does not send out live representatives to examine each property on its site.

 

To find an accurate value for a home you need either a real estate agent

or an appraiser, who can perform a detailed valuation.

 

To sum up, the true value of a home changes constantly. Be prepared to be flexible when trying to determine the value of a property.

Submitted by Kathryn Acciari, REALTOR
Certified Investor Agent Specialist (CIAS)
Certified Distressed Property Expert (CDPE)

 

Putting Today's Technology Tools to Work for You

 

Text and photos copyright Kathryn J. Acciari unless otherwise noted. 
All rights reserved.

 

 

 

Sturbridge & Central MA Real Estate and More

 

 

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Kathryn Acciari, RSPS, SRS, RESE, CFA

Century 21 MetroWest
45 Lyman Street  Suite 14
Westborough MA 01581

Serving the Route 9/20 Corridors of Central Massachusetts
Sturbridge to Westborough

Cell: (508) 982-0686   
Email:
kasellshomes@gmail.com

Web site: kathrynacciari.com
Blog:
Real Estate Blog
Twitter: @kacciari

Comment balloon 3 commentsKathryn Acciari • June 14 2011 07:57PM

Comments

The "true value" of a home can be difficult to define but you are correct in listing location, condition, comparable sales as the best ways to get an accurate estimate of value. Often times the true value is simply what someone is willing to pay for it. The three indicators mentioned are really what the buyer perceives as valuable.

Posted by Terrie Leighton, Reno Real Estate Agent ~ Selling Homes in Reno (Ferrari-Lund Real Estate ) over 7 years ago

Hi Kathryn - The principle of substitution is what drives value for any products especially real estate.

Posted by Conrad Allen, Webster, Ma, Realtor (Re/Max Professional Associates) over 7 years ago

Thank you, Terrie and Conrad.  Supply and demand also come into play in the market.  The higher the demand, the higher the price.

Posted by Kathryn Acciari, RSPS, SRS, REALTOR(R) Sturbridge-Shrewsbury MA (Cameron Real Estate Group) over 7 years ago

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