Home And Garden Articles

How Home Values Are Determined

I thought I might provide some insight on How Home Values Are Determined.

Everyone who owns a home typically likes particular aspects of that home. But these likes and dislikes have less to do with value that you might think, so let me give you some value-thoughts to chew on:

* Value is a moment in time, and is based on what else buyers can buy, the day they go out and look at your house.

* Prices are not forever, because values are fluid. They go up, and they go down, depending what other sellers do with their prices.

* Value is never an isolated concept, its always relationship concept, value in relationship to what other people buy.

* Agents and Sellers set prices, but buyers determine value. This is critical because we can set prices all day long, but we don?t have any control over the market. The buyer will tell us if the price is right.

I often times find that home owners do not know how home values are determined and I find that one of the biggest roles that real estate professionals have is to continuously remind our Sellers of this. When somebody decides to sell their home, they think about what they want for it and they think about what they will do with the proceeds. Unfortunately, none of the buyers for the home care.

Some of the key things seller?s think about that buyers do not consider important ?

What does not affect value?

* What you paid for the house
* Your remodeling costs
* The amount of cash you need to buy your new house
* What you want for your house
* What I say your house is worth
* What other real estate agents say your house is worth
* What an appraiser says your house is worth
* What the tax assessor said your house was worth

So, how do we know how home values are determined? They are determined by what a buyer is willing to pay in today?s market, based on the comparison of your house with others on the market, both here and in other neighborhoods.

(Analogy: Buyers don?t just say? I?m only going to buy in the Golden Eagle Subdivision in Tallahassee.? They don?t look just in the Golden Eagle Subdivision; they look at a larger category of inventory, across many subdivisions in Tallahassee. They screen price range, bedrooms, bathrooms, school zones, etc.)

Who determines value?

BUYERS - I have never, ever spoken with a buyer who said, ? I don?t like that house on Elm Street, but let?s go look at comparable properties to determine its value.? Buyers don?t care about comparables (nor the value of your home) unless they like your home. The most critical data you can operate off of when determining the value of your home is from the homes available in the marketplace the day the buyer goes out and shops.

UNDERSTANDING COMPETITION

People with their homes on the market are competing with the other people and builders who have homes on the market. The number of Buyers is limited and you have to be the best deal if you want your home chosen. Do not ever misunderstand that you are in a race; a competition to attract the best buyer for your home!

UNDERSTANDING CHANGE DYNAMICS

If the market changes tonight and your competition all drop their prices $5,000, then you wake-up tomorrow over-priced. And you have to do something about it. This is the concept of ?value is a moment in time.? Do not ever think that you have ?set? the price on your home and that you do not need to pay attention to value movements in your marketplace.

WHY DOES EVERYONE TALK ABOUT COMPS?

?Comps? is a real estate industry term, short for comparable property sales in the past, that many people errantly rely on to determine value. The critical error that they make is the assumption that markets don?t go up and don?t go down! BAD ASSUMPTION! No other commodity works that way! Why would houses?

Joe Manausa is a real estate investor and the Broker and Co-Owner of Century 21 First Realty. He can be reached via e-mail through the Tallahassee Real Estate Website or on the Tallahassee Florida Real Estate Blog , or by calling (850) 386-2001.

Other Article Sites

findabook.com  moneycd.info  a-mortgage.info   about-lemon-laws.info  aboutstudentloans.info
all-about-publishing.info  auctions-articles.info  bestcollege-university.com  bestispconnection.com
biblefolder.com  blogger-website.com  books-used.info  brokers-guide.info  buywindows.info  cable-dsl.info
career-miner.com  carpel-tunnel.info  cashinaflash.info  cashloanreviews.info  casinobell.com  chat-house.info
clearmycredit.info  collegeloantips.info  crones.info  depression-articles.info   dirnic.net  dishguides.info
divers-below.com  expodog.info   financewizz.com  fire-insurance.info  getgood.info  handleit.net   it-idea.info
health-supplies.info  hosting-right.com  insidealert.com  insurance-facts.info  jobs-employment.info
justgood.info  lookgold.net   lowcost-travel.info  money-source.info  myhostzone.info  numisblog.com
peoplesearchfinder.info  pr-articles.info  realeas.com   refinancing-guides.info  spyware-remove.info
telelot.info  the-law.info   toppaid.info  travel-deals.info  travelcorrect.com  wedding-guide-site.com
your-blog.info  your-credit.info

MORE ARTICLES:

Flowers That Beautify Your Home and Garden
To help gardeners choose flowers, various systems for rating hardiness have been developed. A plant is considered hardy in a region if it can grow and thrive there without requiring special protective measures such as insulating with straw mulch.

Town & Country Conservatories Designs Custom English Skylight for Rockefeller Center's Flower & Garden Show
EnglishSkylights.com, a division of Town & Country Conservatories designs and builds a custom conservatory-inspired skylight for Rockefeller Center's annual Flower & Garden Show.

Florist Johanne Russell Smith to Demonstrate at the Melbourne International Flower and Garden Show
Johanne Russell-Smith, founder of MY ROSES and Box Hill Institute's 2007 Floristry Student of the Year will be demonstrating at the Melbourne International Flower and Garden Show. Johanne will be showcasing her floral designs and sharing her tips for styling and caring for your roses.

In Bloom: Manbury Home and Garden Accessories Unearths Garden Delights for Gorgeous Homes
Manbury Home and Garden Accessories now features a variety of attractive, practical garden solutions at www.manbury.nl, where consumers can peruse and purchase a variety of garden tools and accessories.

5 Most Popular Flowers for Your Garden
When planting a garden there are many questions which you must ask yourself before you begin. Where are you going to plant it, do you have the garden equipment to do so and how big do you want your garden to be? When do flowers bloom and what are their heights? These are all very important questions, however they mean very little if you have not yet decided which types of flowers you want to plant.

Fall Garden Chores for Spring Flowering Bulbs
As the school busses begin to rumble down the road again we are reminded that the gardening season is drawing to a close. For the gardener with an eye toward next spring, however, the season still promises plenty to be done in preparation of a showy spring to come.

Flowering Field Farm of NJ Announces Association with Garden Spot Structures
Flowering Field Farm has announced a new business relationship with Garden Spot Structures of Lancaster County, Pa. The NJ farm is located on Highway 34, just south of the Holmdel border and Route 520. Garden Spot Structures of Leola, Pa. has been delivering fine, Amish-crafted structures for 30 years.

Wild Flower Garden - Plan to Plant
In the previous article I discussed design for your new wild flower garden. The next stage is planning the planting.

Exotic Flowers: Luxurious and Impressive for Your Home and Garden Decor
There are several types of exotic flowers to best suit any occasion. And of course, depending on your personal taste, you will want to choose the best exotic flowers you can obtain to be the perfect flowers, the most adequate for the purpose they will be serving. For example: at someone?s funeral, you may want to choose bouquet of flowers that the deceased would have loved. Here are some other examples (after all, these flowers are for happy occasions as well as the more tragic ones.

Chocolate for the Home and Garden ~ Chocolate Flower Farm Launches New Candle Division
Chocolate Flower Farm, a specialty nursery featuring dark foliaged and flowering plants, launches a new candle division with the acquisition of the exclusive rights to a distinctively different "Essence of Chocolate" candle. The candles along with their popular series of Chocolate Garden Seed Kits will be offered to retailers worldwide.

Wild Flower Garden - Make Amends...Your Plants Will Love It
A wild flower garden, just like any garden you wish to plant, requires good quality soil that will meet the needs of the plants you put in it. That means that your garden soil may need some amendment.

Flower Gardening
Flower gardening is becoming more and more popular every day. Flowers can brighten everyone?s day, they smell nice, and are a great hobby. Flower gardening is simple, inexpensive, and loads of fun. Flower gardening can be done for yard decoration, simply as a hobby, or even professionally.

Wild Flower Garden - Yours to Design and Plan
To design a wild flower garden, you do not need to be a specialist or an artist, you just need to be observant and let your creative juices flow. Look around you, what is unique about your surroundings? Do you wish to enhance or compliment these things.

Enhance Your Flower Garden With Garden Edging
So, you've got your flower garden set up You've planted the flowers, some perennials here, a few annuals there