Homebuyer’s Guide To Calculate The Value Of Edina Homes

June 10, 2010 at 4:44 am

First time Edina homebuyers can save a lot of time, money and effort by being organized and prepared for all the steps in the home buying process. When you are choosing any of the homes for sale, one of the most vital steps to take is the valuation of the home or being able to determine what the home is worth by making your own assessment.

Authors Eric Tyson and Raymond Brown of the book “Home Buying for Dummies” point out that the true value of the home doesn’t only consist of the price. Value means different things to different people, so you need to identify the factors that are most important to you when searching for your ideal home. Ultimately, the value of the home is what a particular home is worth to you, and what types of benefits you will derive from this type of investment.

The first step in the valuation process involves reviewing the actual dollar cost of the home, compared to other homes in the neighborhood. You need to review MLS listings and find out what the seller paid for the home, if possible. Even though the amount the seller paid for the home may be much higher or lower than the asking price, it helps to give you a baseline amount to work with. Of course, you will need to factor in how long ago the seller purchased the home, because any longer than two to three years may not give you an accurate estimate at all.

The second thing a home buyer must find out is if there are any repairs that need immediate attention and how much it will cost. The cost of repairing the home may have been factored into the asking price. If it was not, a home buyer needs to be aware of what they may have to spend for when they buy that home for sale.

The third step in determining the value of the home is to project what it may be worth in three years, ten years or twenty years. Is the home located in a brand new subdivision or an historic part of town? What is the average appreciation value of the home year to year in that particular neighborhood? The appreciation value may be a powerful ‘pull factor’ for a particular property, especially if you are a first time homebuyer in a buyer’s market.

When deciding which among the many homes for sale to purchase, try to look at the different properties available in the various neighborhoods to see what best suits your needs and your budget. Finding out what the true value of the home that you are interested in goes far beyond the price of purchase. There is more to a buying a new home that just what simply meets the eye. Find out more about the current homes for sale in the different neighborhoods and what benefits you can get as a first time home buyer.

About the Author: Alexandria P. Anderson is an Edina Real Estate Agent that helps people to find and purchase Edina homes and other properties in the Twin Cities of Minneapolis and St. Paul.


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