How is a home's value determined?

Asked by Trulia New York, New York Wed May 29, 2013

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Jennifer Fivelsdal’s answer
Jennifer Fiv…, Agent, Red Hook, NY
Thu Nov 7, 2013
A home value can be determined by comparing recent home sales,homes presently on the market and the ones that failed to sell, it is a best guess.

The true value of a home is what the a buyer will pay, and the seller will accept.
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Mitchell Hall, Agent, New York, NY
Wed May 29, 2013
A home's value can be determined several ways and can have different meanings. A home can have a "market value" market value usually means what the home would sell for under normal circumstances.

Market Value determined by NYC and other municipalities is the worth of your property determined by the NYC Finance Department based on your property’s tax class and the New York State Law requirements for determining market value.

Market value is basically an educated guess based on many variables. An appraised value is the value of a home determined by a licensed appraiser through an appraisal. Appraisers use comparable home sales. A home has different values depending on the purpose of the evaluation.

In basic simple terms a home's value is what a buyer is willing to pay for it on any given day
1 vote
Grace, , New Jersey
Thu Nov 7, 2013
The current market value of any house is determined through a valuation process that is performed by a licensed appraiser. It is best to hire a reputed and efficient residential appraiser, such as New York Property Appraiser, in order to determine a fair and accurate market value of a house before buying it. These valuators use several approaches to determine the right value of a house. The comparable home sales analyzer is one of the most common approaches that is used to carry out a residential appraisal. The appraiser considers the cost of similar homes that are sold in the same locality in recent times.

In addition to this, a residential appraiser considers the size, features in a home and their quality, amenities, faults, leakage, and several other positive, as well as negative, aspects when deciding a fair value of any home. An experienced and talented appraiser will make use of modern techniques and equipment to carry out a fair residential valuation. If a particular home has some faults, the appraiser will not only reduce the cost of the house by a certain amount but also suggest good solutions to repairing the existing fault. All these points will be a great help to you when purchasing your dream home at a fair rate, and will prevent you from being the victim of any real estate deceptions.
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Elena Ravich,…, Agent, New York City, NY
Mon Jun 3, 2013
There are several approaches appraisers use to determine property value: comparable sales analyses is the most common in residential properties. Appraisers will look at recent similar sales in the area and then make appropriate adjustments, as to the size, condition, time of sale, floors, amenities, renovation, etc.
For commercial buildings, in addition to the comparable sales approach, they also use income approach (they estimate income and divide it by an appropriate capital rate) and cost analyses (how much it costs to build a new property)
0 votes
Jim Olive, Agent, Key West, FL
Sun Jun 2, 2013
Obviously, since you now know that the value of the home is whatever a person will pay for it, the key to getting a good price is finding the buyer who will pay the most! That's the tricky part...
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Michael Rich…, Agent, NY,
Sun Jun 2, 2013
Value is determined through a thorough analysis known as an appraisal done by a licensed appraiser. This should not be confused with the asking price a seller desires for the property or the selling price a willing and able buyer pays for a property, either of which may more or less than what the property is worth.
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