As a buyer’s representative, I hear this question frequently. No one wants to overpay, yet buyers are often concerned about under-bidding and losing the seller’s interest. In a fast-moving market where there may be multiple offers on a well-priced home, a low offer can result in losing a favorite home to another bidder.

The chart below shows the points of consideration when deciding on the value of a home to you. The chart comes from REBAC, the Realtor entity that grants my Accredited Buyer’s Representative designation. You can read more about the ABR here: http://rebac.net/history.cfm

I have made a comment in red under Absorption Rate. All of the points are relevant and important in your analysis of the home’s value. I have checked the ones I think carry the most weight.

In the end, the value of a home is personal and depends on how much the home will add to your quality of life. These data points will help you build a structure around that priceless concept.