Found 4 blog entries tagged as home value.

The discussions surrounding the question of “what’s a home worth” will never end, because there is no standard answer. Sure the reflex text book answer is “what a buyer is willing to pay” but that’s hardly the complete picture. A home has a number of “values” and most are not tied to the buyers in the market. There is a best answer of course, it also happens to be the simplest one. Spoiler alert...it’s not what it sells for. This short clip provides a common sense overview, below that we get more into the weeds.

Purchase Price

The purchase price is the amount the buyer agrees to pay the seller; this tends to support the “it’s worth what a buyer will pay” idea. Does it? Consider:

  • The costs of selling – commissions, repairs, closing costs,…

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Price per square foot is unreliable to value homes. It is without question one of the most quoted "sources" when home values are discussed but it is so flawed that on any level, it cannot stand even the softest of challenges. In fact, price per square foot is so unreliable that it makes  automatedvaluation models (think Zestimates) look reliable.

The idea that something as unique as a home can be "valued" using a method with at least 10 major variables is idiotic. Yet and still, price per square foot is bandied about as some type of cornerstone when home prices are talked about. It falls cleanly into the "garbage in, garbage out" research idiom as nothing in the data used to ascertain that "value" is credible. The typical real estate agent doesn't even…

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The homebot monthly home value report is now available and is absolutely free. Homebot provides home owners an unequaled depth of information about their home and competing market. Not only providing one of the most accurate valuation models, homebot also provides a market snapshot, current mortgage rates and options, specific loan information, scenarios for selling and buying and even data on Airbnb rental options. This dynamic report is always updating, never static so the most current info is always presented.

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Just a couple of screen shots found in each homebot report:

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Pigs get fed and hogs get slaughtered. Not every home is going to attract viscous competition, even with historically low inventory. Buyers are willing to pay handsomely for renovated and well maintained homes, for homes in highly desirable settings, for high quality well-built homes and for homes that offer something unique that draws them. The idea that sellers can simply put a price on a home and buyers will jump isn’t reality. The media however, has sellers convinced it’s a “name your price” environment. It’s not. Sellers that accurately price their homes will do the best, not just with price but by controlling the transaction. Sink that hook deep, set the rules for the game and tilt the table. An accurately priced, well presented home will draw…

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