Video: 3 Things that determine what your home is worth.

Video: 3 Things that determine what your home is worth.

The video below does a great job of explaining the fact that a home’s worth is subjective. Appraisers work by a standard set of criteria and could not possibly consider every Buyer scenario. The upshot is, that a property appraisal will rarely be a perfect match for a home’s selling price.

Though the video explains the first two factors, price and value, it merely touches on the 3rd element, cost. So to clarify, the cost that is considered by an Appraiser refers to the quality of construction, including materials and labor, to reproduce the existing home.

For your convenience we’ve placed a written transcript directly below this video.

Video Transcript: 3 Things that determine what your home is worth.

How is a home’s worth determined? Real Estate expert Dottie Herman says it’s the result of a home’s price, cost and value.

Welcome to Today’s News Update everyone, I’m Jenny Dunn.

In a recent edition of Eye on Real Estate with Dottie Herman, Herman says price ideally, is what the home is worth today.

The best way to determine price is by finding Fair Market Value. Recently sold properties with similar size and condition help determine price. Other factors such as location and surroundings can also affect price.

The value of the property is in the eyes of the prospective buyer. According to Dottie Herman, value is calculated based on a person’s lifestyle so it’s different for everyone. For someone who can’t drive, a property near a bus station might be more valuable than for someone with a car.

Herman says Sellers often believe their house is worth what they paid for it, as well as improvements they’ve made. The reality though, is that potential buyers determine value and how much they’re willing to pay based on personal preference.

We hope this information is helpful to you. Thanks for watching, see you next time.

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