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The Importance of Determining the Current Market Value of a Home

As a home buyer, you want to know that you are making a good investment.   Part of making a good investment means knowing the value of a home, in the current conditions.  This way, you  will know when to walk away from a bad deal. Or, recognize the deal of a lifetime if it shows up.

But how do you determine the value of a home?  Is it the listed price or asking price of the home?  Can online estimates be used?  What factors contribute?  What is the best way to get an accurate value?

Zestimate does not account for location, upgrades or market conditions when determing a home value estimate.

Large real estate portal sites like Zillow have features that offer an estimated value of the home.  However, these values are only estimates and do not account for some of the biggest factors of home value- like location, upgrades, and market conditions.  This means that the values are not accurate, and Zillow warns that it is meant as an estimate, and that determining the actual value requires the help of a professional.  Certainly, homes that have recently been remodeled with a new kitchen or other features will be worth more than others, and factors like this cannot be ignored.

Without knowing the actual value of the home, negotiations could prove disastrous.  Every home owner wants to get a good deal for their money and make a solid investment.  But, how can you get a good price without knowing the actual value?

Exclusive buyer’s agents accurately determine home value

That is one reason it is so important to work with an experienced buyers agent.  A buyer’s agent knows the value differences in different cities, and different neighborhoods.  They are able to factor in the added value that a good location brings to a home.  They know how much different upgrades are worth and can analyze comparable home values with consideration for differences like hard wood floors, new kitchens, finished basements, etc.  Just as important, they are up to date on the constantly changing market conditions that can make it possible to pay less than normal for a more valuable home.

The bottom line is that an experienced buyer’s agent can thoroughly examine the home or property you want to buy, compare it to recent home sales, consider location and market conditions to determine an accurate current value of the home.  Armed with this information, you will enter negotiations with confidence that you are informed about your investment.  That way, you can correctly know whether are paying a fair price for the home, getting a great deal, or learn that the home is not as valuable as the home seller’s would like you to think.

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