Money. That’s all it really boils down to when you’re in the market for a home. A home is simply an investment — and we all know that no investment is ever free of risk. And so, in order to help you make the most informed decision possible, we’ve put together this list of considerations and questions to ask your real estate agent, so that you can find a home that will be worth investing in.
When looking at new homes on the market, you’ll notice that they’re all priced differently. You can find a million-dollar home for $300,000! But before you shell out your money and start looking for a house with a view, keep in mind that it’s important to know the “market value” of a home — because it will tell you what your house might be worth.
Why is it so important to know the market value of a home?
It’s important because having that knowledge can help inform your decision-making process and help you to decide whether or not you should buy the home. If a home’s price is too high, then you’re wasting both your time and money, and there’s no guarantee that you’ll be able to sell the home for that price. However, if a home is priced fairly, you can rest assured that it’s a good investment.
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It means that the current market determines what homes are worth in your area — so even if there’s nothing currently on the market that fits your personality, it doesn’t mean there won’t be something new for sale down the line. Many people believe that when they’re looking for a new home with their real estate agent, they have to find a house before they buy. But in reality, there’s no need to have a house before you buy. You can search for the perfect home while under contract, and then when the right home comes along, you’ll simply sign another contract.
How do you figure out a home’s market value?
The best way to figure this out is to compare it to other homes on the market. You should look at the following in order to calculate a home’s market value:
Size — The size of the home is an important factor in determining its market value. The bigger the home, the more expensive it will likely be. So if you’re looking for a small house, you’ll probably have more options.
Number of rooms — As compared to other similar homes on the market, how many rooms does your house have? A larger number of rooms generally corresponds to a higher price tag and vice versa.
Condition — If the home is a single-family home, is it well-maintained? If you’re in the construction business and you know that a house has been built recently, you might have an idea as to how much it’s worth.
Proximity to schools — Schools are important! And they’ll probably play a big part in your decision to buy a particular home. If the school is close and your children go there, then you might be more inclined to choose that house over another.
Growth potential — This might not seem like it’s too important but look at what else is on the market. If you find a house that’s not on the market, but you can see its advertisement on the real estate website, then you might have a better idea of market value.
As you can see, knowing the market value of a home will help to inform your decision-making process. And also, it gives you a better idea of whether or not you should buy the home. And if this is all very confusing to you, don’t stress. Just be sure to speak with a professional who knows what they’re talking about when trying to determine this critical aspect of real estate ownership.
