Home Buying in Milford>Question Details

Smartighe, Both Buyer and Seller in Milford, CT

When making an offer to purchase a home what is the best method for determining the homes true value?

Asked by Smartighe, Milford, CT Mon Aug 31, 2009

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Carolyn Nisita-Top Producer’s answer
The Realtor your working with should do a Buyer Analysis for you to help you determine value. Then you must take into consideration a number of variables: How long on the market? Was it reduced already? How does it compare to other homes you have seen? Are there any other offers. What is the list to sale ratio of homes in the area. These are all important questions your agent should be able to answer. Make a list of upgrades and the cost of those upgrades should you have to do them?

If you're not working with an agent, then I would be happy to help you through the process..
0 votes Thank Flag Link Tue Sep 1, 2009
I would not say that Zillow is "terrible". The information is subjective. It is a quick and easy resource to get a general idea of a home's value and is useful to buyers and sellers. If someone just needs a quick and general assessment prior to getting a home appraisal or a thorough CMA, Zillow (along with other info) can be helpful and provide a rough idea.
0 votes Thank Flag Link Tue Sep 1, 2009
Zillow is a helpful resource in determining a home's market value. If you go to their home page and type in the address, they will show a "z-value", which is an approximate market value based on the home's location, size, and other homes that have sold in the immediate area recently. It is not the "exact" market value, but definitely gives you a ball park to work with. It will also provide you with a z-value of nearby homes for comparison.

I am local to the Milford area, so please let me know if you need help with Zillow or something else.
0 votes Thank Flag Link Tue Sep 1, 2009
Hi Smartighe

I think using the term "true value" is not the best way to look at buying a home - a home is only worth what the buyer is willing to pay given current market conditions - I prefer the term "current market price". The best way forward is to interview several agents and find one that you are comfortable working with and who can provide you with comprehensive information as to what the market will bear in regards to pricing.
0 votes Thank Flag Link Tue Sep 1, 2009
Home values are determined by recent home sales in the the area. Similar homes are compared and given an extra value or a deducted value for the amenities that are in one house over the other.

For example if you have two 3 bedroom 1 bath homes, you would compare them by condition and style and add or take away for that, or if one had a fireplace you would add value to the house with the fireplace and so on. Updated homes usually get extra value over outdated homes or homes that need fixing up. The homes should be near each other as well. It is possible to add or deduct value depending on the location of the home.
0 votes Thank Flag Link Mon Aug 31, 2009
Your buyers agent assist in making that decision on best interest of all parties. Research, investigation must take place, comp value, condition of home

Many factors come into play.

National Featured Realtor and Consultant, Mortgage Loan Officer, Credit Repair Lecturer
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0 votes Thank Flag Link Mon Aug 31, 2009
The best method for determining the true value of a home is an appraisal.
0 votes Thank Flag Link Mon Aug 31, 2009
The best way to determine the homes true value is to enlist the help of a buyer's agent! Bar-none!!! It's FREE to you as a buyer. The seller has already signed a listing agreement stating that they agree to pay a buyers agent for bringing a buyer. And make sure you don't fall for using the Listing agent to save money. It might save a few dollars for the seller, but in the end, you will be basically unrepresented (b/c the listing agent has already signed a contract with the seller to work on their behalf). You will never know, 100%, if the negotiations actually went in your favor. If the selling agent knows what you're willing to go up to (your cap) there's really no way to know if he/she didn't disclose this information to the seller. There have been many lawsuits resulting from this very issue.

Find an agent! Sign a Brokerage Agreement with them and let them do their job.

Good luck!

Jodi Smith
Atlanta Real Estate Agent
Keller Williams Realty Consultants – Roswell, Georgia
Tweet Me: http://twitter.com/JodiRSmith
0 votes Thank Flag Link Mon Aug 31, 2009
A homes "true" value is what it sells for... This would be called the "Market Price" and can only be determined after a successful offer, acceptance and closed sale is made. The market is what drives the price.

However, in order to determine the best price to offer when looking to purchase a home, you need someone who is qualified and trained in real estate to do a market analysis or determine the comparable values in the neighborhood. This is called the "Market Value" A licensed Realtor can do a CMA or Competitive Market Analysis, or an Appraiser can do an Appraisal for you. The appraiser will charge a fee and the Realtor if they are representing you, will do this as part of their service to you. This is the most accurate and "best" way to determine the homes true value when making an offer as a buyer.

Remember, as a Buyers Agent, the Realtor is representing you and your best interest. If I can be of any further service or if you would like a referral to a qualified Realtor near you, please don't hesitate to give me a call anytime or visit my website: http://www.MyMilfordNeighborhood.info

Best of luck to you.

Tim Denbo, CDPE
Certified Distressed Property Expert
Realtor, e-PRO
Keller Williams Realty
0 votes Thank Flag Link Mon Aug 31, 2009

Consult with your ral estate professional. They will be able to provide you with comparison information for recently sold homes that are similar to your target home.

The best way to arrive at a true reflection of a homes true current value is to analyze recent sales.
0 votes Thank Flag Link Mon Aug 31, 2009
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