What's It Worth?
March 7, 2011
Real Estate agents are often asked by both buyers and sellers, "What's it worth?"
The really appropriate "off-the-cuff" answer is "It depends". However, one often gets the retort "you're the professional, you should know."
The worth of any material object depends on several factors. Real estate is no different.
The worth of a house to a seller depends on how much it has satisfied his lifestyle. A seller may also determine the worth of a property by how much a friend or neighbor was able to sell a similar property for.
The worth of a house to a buyer will depend on the reasons for wanting to make the purchase. Is it because the house is exactly perfect for the buyer's wants and needs? Is it because it is in a desirable location? Is it because it looks like a great investment? Is it because other houses with similar amenities in similar locations have sold at a particular price?
The worth of a house to a real estate agent will probably be a bit more analytical. How large is it? Where is it located? Does it have any upgrades or updating? What have comparable properties been selling for?
In the end, a property is worth whatever price a willing buyer and a willing seller will agree upon with the addition of a lender's assessment as to what the lender would be willing to lend. A buyer and seller may agree on a price, but the lender will not appraise the property at the agreed upon price.
At that stage of a real estate transaction, the "What's it worth" question becomes for the buyer "Am I will to put more money down and pay above appraisal?; for the seller, " Am I will to sell it for the appraised value?"
It depends on motivation and desire - the most important factors in decision making.
Real Estate agents are often asked by both buyers and sellers, "What's it worth?"
The really appropriate "off-the-cuff" answer is "It depends". However, one often gets the retort "you're the professional, you should know."
The worth of any material object depends on several factors. Real estate is no different.
The worth of a house to a seller depends on how much it has satisfied his lifestyle. A seller may also determine the worth of a property by how much a friend or neighbor was able to sell a similar property for.
The worth of a house to a buyer will depend on the reasons for wanting to make the purchase. Is it because the house is exactly perfect for the buyer's wants and needs? Is it because it is in a desirable location? Is it because it looks like a great investment? Is it because other houses with similar amenities in similar locations have sold at a particular price?
The worth of a house to a real estate agent will probably be a bit more analytical. How large is it? Where is it located? Does it have any upgrades or updating? What have comparable properties been selling for?
In the end, a property is worth whatever price a willing buyer and a willing seller will agree upon with the addition of a lender's assessment as to what the lender would be willing to lend. A buyer and seller may agree on a price, but the lender will not appraise the property at the agreed upon price.
At that stage of a real estate transaction, the "What's it worth" question becomes for the buyer "Am I will to put more money down and pay above appraisal?; for the seller, " Am I will to sell it for the appraised value?"
It depends on motivation and desire - the most important factors in decision making.
posted by shirley harry at 8:09 AM
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