How to Evaluate a Home’s True Value

The list price is not the home’s value. It’s a marketing number. Sometimes it’s strategic. Sometimes it’s aspirational. Sometimes it’s intentionally low to spark a bidding war. If you’re serious about buying or selling, you have to separate emotion from strategy. Value isn’t what a seller hopes for or what a buyer wishes it was — it’s what the market is willing to pay right now.

If you really want to know what a home is worth, stop obsessing over active listings and start studying what actually sold. Sold comps tell the truth. What did similar homes same neighborhood, similar size, similar condition, close in the last 30 to 90 days? In markets like San Francisco, a few blocks can change everything. Views, noise, walkability, and even which side of the street you’re on all matter. If a home wouldn’t have competed for the same buyer pool, it’s not a true comp. Period.

Image by Simon from Pixabay

Next: condition. And I don’t mean pretty staging and fresh paint. I mean the roof, the foundation, the plumbing, the electrical. I mean the things that show up in inspections and cost real money. A remodeled kitchen is great, but if the systems are outdated, buyers will factor that in fast. Real value isn’t just about aesthetics — it’s about long-term livability and risk. Buyers today are informed, cautious, and very aware of deferred maintenance.

Then there’s location, and no, I don’t just mean the zip code. Micro-location can swing value dramatically. Is the home on a busy street? Does it get natural light? Is it walkable to parks, coffee shops, or transit? Does it feel good when you walk in? Two homes with identical square footage can feel worlds apart. Lifestyle matters. Flow matters. Light matters. And buyers absolutely pay for that.

Finally, timing. The same house can be worth two different numbers depending on the season and inventory levels. Is there competition? Are buyers writing multiple offers? Or are homes sitting and reducing? Value is always tied to supply and demand in that exact moment. If you evaluate a home without considering market temperature, you’re guessing. And in this market, guessing is expensive. True value comes from looking at the full picture, not just the price tag.