How to Find the Value of a House
Ascertaining the true value of a home can be difficult, even for general real estate professionals. Both objective and subjective factors go into every valuation. On the large scale, national interest rates can make houses across the nation more or less affordable, a factor that’s completely out of the control of individual real estate agents or buyers or sellers.
On the local scale, trends in the market can dictate a home’s value. Remember that general real estate prices ebb and flow on a daily basis based on the machinations of large scale and small-scale economic movements.
There are also objective factors, such as the type of property, the status of residency, the number of stories and bedrooms, the presence or absence of a fireplace, and the total square footage of the land, which contribute to a general real estate appraisal. On top of that, the type of heating system, the presence or absence of central air-conditioning, the size and number of garages, the lot size, the basement dimensions and degree of finishing, and the year built can all have crucial impact on the home’s final value.
Semi subjective factors can also come into play. A home that’s kept neat and tidy with a yard that boasts a pleasant aesthetic can sell for much more than a similarly designed and located home with poor upkeep and poor yard maintenance. You also have to consider the psychological/financial states of the seller and buyer. In general real estate that’s complicated by sensitive timing or idiosyncratic financial features, the speed of a deal may make the house worth more or less than it would price given normal constraints.
Finally, the true value of a home can depend sensitively on the closing negotiations. If a seller has an adept agent, and he or she meets buyer’s conditions, the house may sell at inflated price. Conversely, if the seller is unprepared, or if the buyer comes equipped with a stellar negotiating team, the price may sell under its real value. The important thing to remember is that a home’s value isn’t a stable number. It’s a variable, a collective fiction, in some ways that’s pinned down only by literally dozens of competing factors.