Let's talk house prices!
How are they determined?
What is the difference between my house and the one down the street?
Many factors come into play on a fundamental level with the understanding that land itself is becoming scarce. This all well maybe the reason for house price inflation based on demand.
The price in determining the value of your home a.k.a home appraisal varies. Contributing factors such as materials used, cost of labor to build the house, and the value of the residence all matter. When planning on buying or selling your home, it is crucial to understand how appraisals work and when to get one. Knowing the value of your home plays an important role when deciding what financial vehicles are available to you for refinancing or having a line of credit administered.
Aside from home amenities and location, comparable properties within the area play a factor in the value of your home. Although the house itself and where it is placed gives your appraiser an idea of what the value may be, it is equally as important to consider the other properties in the surrounding areas. If similar homes are selling for slightly higher or lower than the appraiser would expect, they may choose to adjust the price according to the value of your home. Identifying the prices of other homes that have sold in the area, gives the appraiser an actual price to compare to the appraised price while pushing for top dollar.
