Looking at Homes and Narrowing Down Your Choices
Posted by at December 6, 2011 in Home inspections
As you walk through the homes on your list of prospects, be sure to use the Home Inspection Checklist. You’ll find it useful in focusing your attention on vital things you need to be looking for.
What Is a House Really Worth? What a home is worth is a complex question, because no two homes are exactly alike. Appraisers compare recent sales of similar properties and then add or subtract value to compensate for differences and amenities to arrive at an approximate value. While that approach can put you in the ballpark, it usually ignores important market and emotional factors that can influence what a home will ultimately sell for.
Realtors approach value by going the comparative market analysis (CMA) route, in which an agent puts together a list of sold properties that are similar to the house in question. Realtors also add to the CMA similar homes that are for sale and those with sales pending.
Because valuing a home isn’t an exact science, different people look at the same data and come up with varying opinions as to what the house should sell for. Ultimately, the market decides what a home is really worth, despite its owners and agents wishing otherwise.
A home’s emotional appeal plays a big part in determining the interest in and the selling price of a home. For instance, consider the home no bigger than others in an area that sold for nearly $8,000 more.
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