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Value Of Home

March, 2015

If you are a homeowner, the value of home to you might be different than that of the real estate broker because of the sentimental value it holds. However, no matter how much you think your home is worth, the value of home will depend on several factors set by the industry and the condition of the market. Experts suggest that in order to get a more accurate calculation as to what the real value of home is, you should not focus on the price of the property itself, but also on the rental rates. The most common method experts use in determining whether a property or house is undervalued or inflated is the home price and rent ratio. This method is similar to the one used in determining the price of stocks. Thus, if the price of the stock is high and the per-share profit is low, then the price/earnings ratio is high.