Real Estate Prices

By:   Date: 26 December 2009

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An Introduction to Real Estate Prices:

Real estate prices depend on a number of factors, the most important being the mood of the market. The worth of a house is gauged by the buyer's willingness to pay. The market moods have been ever swinging and there is no definite formula or pricing method that are employed. From the seller's point of view, time is the most important factor in deciding what he gets because one who is in a hurry to sell the house has to accept the money offered by the buyer.

The volatility of real estate prices:

Housing market values have exhibited volatility that has seen real estate prices moving upwards as well as downward in the recent years. It is necessary that buyers and sellers in the real estate market keep a track of prices like other markets the housing market also witnesses booms and recessions.

A good knowledge of home pricing strategies is necessary to correctly estimate real estate prices. The data on comparable sales play an important role once the landscape is sized. Looking at a similar home can give an idea of the active competition that is prevailing in the market. The policy of wait and watch pays in this observation as waiting for the sale of a similar house may give an idea of the premium or discount on the market value.

One can use the square foot pricing method if one is unable to find a similar house. The average price per square foot estimated through this method gives a good approximation of the direction in which the market is moving.

One can further ensure that he is getting what he owes by contacting a real estate agent and get hold of a CMA(Comparative Market Analysis). A professional appraiser can also be hired for $250-$400 to specify the number and size of rooms, amenities etc. and thus supplying reasonable real estate prices.


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