Determine House Market Price Yourself

First time home buyers sometimes feel like they have been placed on foreign soil without a clue as to what to do next much less understanding whether they will be able to secure a home of their own without paying too much for it. For this reason, it is necessary to know how to calculate the house market value.

That value is not necessarily going to be the same as it may have been a year ago, or even what it will be next year.

As you search for your new home, here are some things that you can do to help you to determine the fair house market value of the home you are interested in.

1. Make a list of the features of the house you are interested in. That should include the year it was built, square footage, number of bedrooms, garage size, roof style, counter tops and flooring materials, landscaping, fencing, fireplace and or pool.
   
2. Find information about three or more comparable properties that have sold in the immediate vicinity of the one you are looking at. These properties should be similar in size and structure.

3. List these properties according to the actual selling price.

4. Make note of any differences that are found between the comps and the home you are looking at, and compare those differences according to age, materials and condition.

5. Adjust house market value for differences between the subject property and the comps such as age, condition and materials. For instance, if a comp is 10 years newer than the home you are looking at you will have to adjust the house market price accordingly.

6. Figure up all the adjustments for every property that you have information on and either add or subtract to come up with a realistic house market value for the home you are interested in. Check with realtors or contractors to determine the value of particular items on your list.

7. Find the average house market value by adding your adjusted findings together and dividing this by the total number of comps. This will render the estimated house market price for the property you are considering buying.

Once you have determined if this is the house you really want and that it fits what you are willing to pay, it may be a good idea to order an appraisal to verify your findings. This way you can firm up your decision and proceed to putting a purchase agreement on that awesome house.

Do you have more questions? Have a Question is an cool forum to get those questions answered. Go ahead and ask away!

Leave Appraisal to Establish House Market Price and return to Appraisal Basics main page.

Return to First Time Home Buyer Solutions home page.

Would You Like Your Own Website?
Click Here for FREE Details.

© 2005-2011 All Rights Reserved
Powered By SBI!