Home ‘value’ isn’t absolute – it’s subjective

June 13, 2014
Author: Inman News / Miller, Hank

Buyers' and sellers' motivations and desires play a big role, but they can be difficult to calculate. Some people may be willing to pay more for a pool, a main-floor master bedroom or to live a certain location, for example, but these features may turn off others.

Experts point out that a home's worth is based on the data as well as the role it serves for the person living there. Other factors to consider include functional obsolescence due to over-improvement, whether the market will pay more for unique features like outdoor kitchens or media and audio systems, and whether buyers want athletic equipment in their homes that they can access at professional gyms and training facilities.

It's important for buyers to consider whether the home works for them, as the "value in use" to the occupant may not be supported by market data.