Zillow Advice: Home Buying - what is my house worth?

The legal definition is ...."The ...

Sat, 04 Jul 2009 23:17:00 GMT

The legal definition is ....
"The most probable price (in terms of money) which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: the buyer and seller are typically motivated; both parties are well informed or well advised, and acting in what they consider their best interests; a reasonable time is allowed for exposure in the open market; payment is made in terms of cash in United States dollars or in terms of financial arrangements comparable thereto; and the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale."
The question is are you having full access to all relevant facts. How often do RE tell their clients to over bid and over pay. Not to mention not fully disclose what so called multiple offers are. So the buyer isnt all that informed since higher prices only benefit sellers, realtors but not buyers

Yes the true value of a property ...

Sat, 04 Jul 2009 19:54:00 GMT

Yes the true value of a property is what is a 'reasonable and educated' buyer willing to pay for it and what a 'reasonable and educated' seller is willing to sell for.

But what determines 'resonable and educated...

Location - number one! - is it in a well sought after location - if not a price adjustment will be made by the 'reasonable and educated' buyer. We get and idea of how much of an adjustment by studing the sales in the same location

Condition - number two! - is it perfect - updated - CLEAN - fresh -etc
if not again a price ajust will be made - and we learn how much again by studing recent sales.

When you compare homes to determine price they should have sold in the 3 to six months -
They should be within the same neighborhood or a least within a one mile radius
they should be approximately the same square footage you can go 200 sq foot smaller and 200 sq foot bigger but any more and your results are unreliable....your price per sqare foot adjustment is 1/3 th average price per sq foot of the 3 best comparables that recently sold.
Single story should be compare to single story
Homes with pools should be compared with homes to pools.

Now that's the science - there is an 'art' side to this
Does you home have something that might really turn buyers off or on that an adjustment needs to be made for. i.e. a funky floor plan

Your best bet is to get 3 or 4 agents that have been in the business a while - at least 5 years and ones that earned designations i.e. GRI - CRS (proves time in the business and that they have extra training)
and have them do CMAs for you - that will give you good range

Also keep in mind many areas in Florida are still in a declining market - the agents will be able to share more on your specfic area.

It is worth what someone ...

Sat, 04 Jul 2009 11:13:00 GMT

It is worth what someone is willing to buy it for and what the market value is today.

Hi drdawn. You can ...

Sat, 04 Jul 2009 10:55:00 GMT

Hi drdawn.

You can put the address into Zillow and get an estimate that they call a Zestimate. This will give you one value. Alternatively, you can get a Realtor to do a CMA (Comparative Market Analysis) or hire an appraiser to give you an appraisal.

All of these are estimates with some more accurate than the rest. But, the bottom line is, your house is worth what some one is willing to pay for it.