{"id":27051,"date":"2019-07-12T09:00:12","date_gmt":"2019-07-12T13:00:12","guid":{"rendered":"https:\/\/bhgrealestateblog.com\/?p=27051"},"modified":"2024-12-30T11:03:37","modified_gmt":"2024-12-30T16:03:37","slug":"real-estate-market-news","status":"publish","type":"post","link":"https:\/\/bhgrecareer.com\/bebetterblog\/real-estate-market-news\/","title":{"rendered":"How to Use Real Estate Market News for Home Valuations"},"content":{"rendered":"\n<p>One of the most significant challenges agents face\nis providing a fair assessment of a property&#8217;s value. The house must be priced\nright to get buyers to bite. Undervaluing the home could mean the sellers lose\nthousands of dollars. Knowing current real estate\nvalues is integral to providing the highest level of service to clients.\nLearn how to use real estate market news for\nhome valuations.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Know the Difference Between Evaluations and\nAppraisals<\/h4>\n\n\n\n<p>An evaluation determines the<a href=\"https:\/\/bhgrealestateblog.com\/recent-real-estate-sales\/\"> <\/a><a href=\"https:\/\/bhgrealestateblog.com\/recent-real-estate-sales\/\">market value of a\nproperty<\/a> based on\nwhat a buyer will pay for it now. Valuations determine market value based on\nrecent past transactions. To prepare an evaluation, an agent researches the\nsales prices of homes sold over the past six months within an approximate radius\nof one mile. The homes are compared based on size, location, age, and amenities\nto come up with a reasonable value for the house. A professional appraiser\nassesses the value of the home based on a series of calculations to figure out\nthe property taxes. Evaluation is what helps agents come up with a fair listing\nprice.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Turn on the News<\/h4>\n\n\n\n<p>Newsworthy factors influence the real estate values. Political, economic,\nenvironmental, and social factors all play a role in how much a house is worth\nin the current marketplace. For example, home values may plummet during a\nrecession with a high rate of unemployment when people are unable to afford to\nbuy a property. However, this may increase the number of people looking for\nrentals. Or an area with several recent storms might have damaged homes and\nbusinesses that were abandoned, lowering neighborhood property values.\nUnderstanding what&#8217;s happening in the country and world helps agents\nrealistically assess property values and communicate effectively with clients\nabout them.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Buyer\u2019s or Seller\u2019s Market<\/h4>\n\n\n\n<p>Savvy agents review the financial news to determine\nwhether it is a buyers or seller&#8217;s market. During a buyer\u2019s market, homes may\nsell for less than during a seller&#8217;s market. In a buyer\u2019s market, an eager\nseller may choose to wait it out and see if the property values increase in a\nnext year or two. Buyers can get amazing deals at this time, especially if\nmortgage interest rates are low. In a seller&#8217;s market, a shortage of inventory\ncan create bidding wars, causing homes to sell at their current value or higher.\nNavigating these changes is essential to ensure clients are in the best\npossible financial situation to buy or sell.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">The Rule of Supply and Demand<\/h4>\n\n\n\n<p>Beyond the state of the market, the basic rule of\nsupply and demand applies to home valuations. Real estate market news often\nfocuses on supply and demand to keep agents informed about pricing. When the\namount of available properties is high, and the demand is low, the price of the\nhomes is low. On the other hand, if the supply is low and the demand is high,\nthe prices for homes go up. Agents need to determine the supply and demand in\ntheir neighborhood to accurately assess property values. Underestimating a\nproperty&#8217;s value is a disservice to the sellers. And failing to negotiate a\nfair price means the buyers are paying more than the property is worth.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Four Critical Factors<\/h4>\n\n\n\n<p>Four critical factors define the real estate market.\nFirst, demand reveals the number of homes wanted in an area at a particular\ntime, and specific price, as well as how willing and able buyers are to\npurchase them. Second, is usability and whether the home requires repairs and\nrenovation to occupy it. Then the ease of transfer is a factor because the\nproperty must be legally able to change hands without encumbrances. Finally,\nthe rarity of the property determines its market value. For example, if there\nare a few luxury homes in a neighborhood with two dozen potential buyers, the\nvalue of the homes will increase. Experienced agents review these four factors\nduring the valuation process of a property to make the most accurate\nassessment.<a href=\"https:\/\/greenhouse.bhgre.com\/content\/BHGRE\/en\/content\/learning\/learning-overview.html\"> Affiliated <\/a><a href=\"https:\/\/greenhouse.bhgre.com\/content\/BHGRE\/en\/content\/learning\/learning-overview.html\">Better Homes and\nGardens\u00ae Real Estate agents<\/a> have access to innovative learning tools to help them learn how to make\naccurate assessments.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Collect Local Data<\/h4>\n\n\n\n<p>Some of the most valuable real\nestate market news is the local data that defines the current market\nconditions in a neighborhood. Explore the average volume of properties sold in\nthe past six months, along with prices and appreciation rates to determine\nwhere the market is headed. Review the features of the recent properties that sold\nquickly to see what buyers want. And keep a finger on the pule of the social,\neconomic, and demographic conditions that impact who can buy and sell a\nproperty. Knowing the local target market gives agents the facts to best assist\ntheir clients. Resources for agents to check include MLS, Federal Reserve\nSystem, Bureau of Labor Statistics, Census Bureau, mortgage bankers, title\ncompanies, school district, county offices, tax appraiser&#8217;s office, and Chamber\nof Commerce. Determine the times of the year<a href=\"http:\/\/money.com\/money\/5636037\/when-to-sell-your-home\/\"> <\/a><a href=\"http:\/\/money.com\/money\/5636037\/when-to-sell-your-home\/\">when properties sell<\/a> for the most to advise your\nclients on when the buy and sell.\n\nKnowledgeable agents\nrecognize the importance of studying recent real estate\nmarket news to determine current real estate\nvalues. An agent who can accurately evaluate homes is sure to attract\nplenty of clients through referrals and positive word-of-mouth.\n\n\n\n<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Discover how to use real estate market new for home valuations and get smart tips from Better Homes and Gardens\u00ae Real Estate on assessing current real estate values.<\/p>\n","protected":false},"author":181,"featured_media":27061,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31,131,171,181,191,201],"tags":[19181,34631,34721],"class_list":["post-27051","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-brokerage-operations","category-marketing","category-productivity-2","category-real-estate","category-real-estate-marketing-2","category-real-estate-news","tag-home-valuations","tag-real-estate-market","tag-real-estate-news-2"],"yoast_head":"<!-- This site is optimized 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