value of the home or homes you are interested in. It calculates the basic conditions, such as, but not limited to age, number of bedrooms, bathrooms, existence/size of the yard, number of garage spaces. (if any) fireplaces. (if any) basement. (if any) and whether or not if it is finished or unfinished, types of updates, materials and finishes or perhaps a swimming pool (above or below ground). Then it compares your potential home to similar houses both currently on the market or that have recently sold with many of those same amenities in the area you are looking - usually within a half mile. This model will give you an idea of the average local cost, which will be fundamental information to inform your offer. After the approximation, add or remove the components that respectively increase or decrease the value. For example, you could be looking at a home where the current owners have recently replaced the 25 year old roof and changed the furnace and A/C in the house. If the homes of the same age you are comparing do not have those items, then the home you are interested in is worth more as those other homes will need to replace those costly items soon. Research the market trends. Has the local market gone up or down over the last few years? Do people buy or sell more? Are there houses being built that will soon be for sale? For example, teardowns and new construction would indicate rising local home prices. Those calculations and forecasts may take time and effort, but they will ideally leave you with options to consider and choose from. The real estate agent’s services will be very helpful. It won’t take a professional as much time to evaluate all the pros and cons and come to you with a proposal. Your real estate agent will assist in this process and usually help to decide. The agent may advise you on an offering price as well
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