HOW AGENTS DETERMINE HOME VALUE

If the market is healthy and supply and demand are balanced, it is not difficult to determine the home value. However, if the market is not healthy, it is hard to find out what the value of the home is.

Real estate agents use the Competitive Market Analysis (CMA) to determine the property value. The first step is to know the property which the agent is going to list or sell. Below are some key information that help the agent to determine the home value:

• The condition of the house, how old is the electrical panel? Any mold in the basement? And so on.
• Was there any renovation or improvement done to the house?
• How many bedrooms, bathrooms and garage does the property have.
• The lot size, square footage of the house and type of the house, is it bungalow or 2/3 storey.

By gathering all this information, the agent is having a better idea about the property that he or she wants to evaluate. The next step is to look at what similar homes in the area have sold for recently and whether the market is trending up or down in general.

Using all of this information a real estate agent can give you a very accurate estimate of what you would be able to sell your home or buy a home for.

Finally, the beside all the factors that we talked about in above, it is up to the seller on how much they are agreeing to sell or how likely buyer is willing to pay. The motivation of seller and buyer are significant on closing a deal.