Buyers Market Value... When it comes to home appraising, these are three words an appraiser will use. When you determine an asking price for your home, you need to estimate what the majority of buyers will be willing to pay. This will require comparing local home sales, and making an assessment of the real estate market. Having your home priced correctly is crucial to the outcome of selling your home.

Here are some key topics of interest when it comes to home real estate appraising.

Market Analysis
When assessing the state of the current real estate marketing, consider that a market is typically going to favor either sellers or buyers. Very rarely is it balanced. To get a good idea of the market quality, consider the number of months of standing inventory in your market, at a given price range. Your market area will be all neighborhoods that are offering competition to your potential buyers. To figure this...
- Determine the number of sales in your market area and price range for the past year.
- Take the number of sales, and divide by 12. This will give you the number of sales per month (sales rate)
- Determine the number of homes currently on the market.
- Divide the number of homes on the market by the number of sales per month.

This will show you how long it will take for current inventory to clear.

Buyer's Market
When a market has more than 8 months of inventory, it is considered to be a buyer's market. This situation is typically created as a result of employment decline, excessive building, and high interest rates.

Sellers Market
When a market has less than six months of standing inventory, you have a seller's market. The number of buyers is considerably larger compared to the number of homes for sale in a sellers market.