People wonder if the home value is the same as the winning bid. Sometimes it is, but certainly not always.
The winning bid is 'what the fool will pay for it.' You buy a house with your heart, and if you have a lot of affinity with the place, you often pay more than the actual home value. This also happens often with buyers with more financial leeway because they bring their own money through savings, donations, or selling the old house.
When a larger group of buyers invariably pay more (or less) than a home is worth, home prices are pushed up (or down) more relative to typical price trends, setting a new standard for the market.
At Walter, we therefore calculate the winning bid by always being just 1 step ahead of the crowd because we analyze buyer and seller behavior and forecast house price developments. That's why you always get two amounts at Walter: the home value and the amount for the winning bid.
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The basic principle for calculating the value of a home begins with a comparative market analysis. This looks for homes that have sold before and are similar in terms of the type and size of the home.
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