The value of a house goes up and down, similar to other commodities. Value is determined by what a buyer is willing to pay. This doesn't mean that the seller will agree to any price that is offered. There are many factors that affect value/price, including the following:
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location |
convenience to major highways, shopping, work, zoned for good schools, etc. |
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neighborhood |
active HOA, how well neighbors keep up their homes, available amenities, etc. |
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condition |
homes needing major repairs fall at the low end of market value, homes in great condition at the high end |
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age |
older homes usually cost less, unless they have been updated and well maintained |
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size |
total price for smaller homes usually lower, but $/SQF is usually higher |
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competition |
prices of comparable properties in proximity to the subject |
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seller motivation |
discretionary move vs. forced to move by job transfer, inability to make payments, etc. |
An appraisal is a value at a particular point in time; local appraisals are currently good for only 30 days. They are based on the selling price of properties in the vicinity that sold in the last six months; currently active properties are taken into consideration as well in determining value.
Your Realtor can help you look at comparable homes to see what the selling price has been in that neighborhood in the last six months and what the current competition is asking. When looking at homes that have sold, compare their size (SQF), condition and amenities to the one you are considering to determine value.
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