House Value Can Pose a Real Challenge

Summary


When you own the Victorian mansion in a neighborhood of ramblers, how do you determine the value of your home? Or if you want to buy that charming Cape Cod cottage in a community filled with imposing brick Colonial-style homes, how do you decide if the owner is asking the right price?

The most common method of determining the value of a home is to look at three to five homes of similar size and condition in the same neighborhood, then raise or lower the value based on the home's particular quality.

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Extract


House Value Can Pose a Real Challenge

Appraisers and Realtors have struggled with appropriately valuing properties throughout their careers, and the fast-paced Washington- area real estate market of recent years has only exacerbated the problem.

When cookie-cutter homes placed in standard subdivisions have wildly different sales prices - even if they have been sold only a few months apart - the job of appraisers to accurately set a value on an unusual home becomes as...

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