How To Value The Property As A First Time Minnetonka Homebuyer

First time 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.

When you begin the valuation process of any of the homes for sale, the first step that you can take is to review its actual dollar cost and compare it to the other homes for sale in the same neighborhood. This can be done by studying the MLS listings of the area and discovering how much the seller had paid for the home, if possible. Finding out how much was paid will give you a baseline amount to use in your assessment, whether or not it is lower or higher than the seller’s current asking price. Other factors that you have to take into consideration is when the seller had bought the home because if more that 3 years has elapsed, an estimate based on the purchase price will no longer be accurate.

The next step in determining the value of the home is to consider how much work needs to be put into it if you were to move in next week. What needs to be fixed? How much do you estimate the repairs would cost? This amount may or may not be factored into the asking price, so it’s important that you understand what type of investment you will need to make on top of the asking price in order to ensure your home is exactly how you would like it to be.

The final step in determining the true value of any of the homes for sale is to project what the real estate value of your investment will be 5, 10 or 20 years from the date of your purchase. Is the home for sale located in a brand new subdivision or in a historic part of town? What is the average appreciation price of the homes in the neighborhood that you are interested in? Home buyers must be aware of the fact that investing in real estate property in an area where the price steadily appreciates will be to their advantage in case they ever decide to sell the home that they have purchased.

There are several factors to consider when you are looking at different properties and exploring various neighborhoods as a first time homebuyer. The true value of your home goes well beyond the asking price because you need to take into consideration how much of the home needs to be repaired, what the biggest benefits of living in a particular neighborhood are, and what the property will be worth in a few years. Take the time to learn about the price history and general market appreciation (or deprecation) rates in your neighborhood so that you can make a well-informed financial investment as a first time homebuyer.

Author: Alexandria P. Anderson specializes helping people to find and purchase Minnetonka homes, as well as Minnetonka real estate for her realty clients.

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