How Do I Determine the Worth of a House I Want to Buy?
Buying a house often is the largest single purchase a person makes. While there are a number of considerations that go into the buying decision, such as location, size, style and age, one of the largest determinants is cost. Before deciding on a payment price, it helps to know just what a particular house you want to buy is worth. Since the actual worth can differ greatly from the offered price, you should proceed with caution. Determining the worth means looking at the home value using as many sources of information as possible, and after careful research, making an accurate assessment.
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Things You'll Need
- Real estate sales records
- Real estate agency
- Licensed appraiser
- Calculator
Instructions
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Study the real estate listings for recent pricing information on houses like the one you're interested in located in the same area. Comparable housing transactions will give you an approximation of the worth of the house that you're considering.
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Consult a real estate agent with experience in the area and with houses of the same type. An agent's estimate will give you the price they expect the house would go for and the offer they believe a homeowner will accept for the property.
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Ask for an appraisal of the home from a licensed home appraiser from the seller. Most sellers will have a recent appraisal available for buyers already prepared to assist in verifying the asking price. The appraised value is the value generally considered the most accurate representation of the home's value.
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Average out the amounts given by your sources. Add the various prices and divide the sum by the number of prices used. This will give you an idea of the house's worth, and a starting point for making an offer on the home. Keep in mind that the ultimate worth of the house is the final price placed on it between you and the seller.
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References
Resources
- Photo Credit for sale apply within image by Keith Frith from Fotolia.com
