We have been approached by a neighbor to see if we are interested in buying his house. We are renting now and he got divorced a number of years ago and wants to move to another city.
The house is about 10 years old and in good shape, he has been living alone for about 8 years, doesn't really cook and is frequently away for business. We took a tour of the house and he shared the original blueprints with us.
We asked how much he is looking to get and he simply told us to make an offer. I think that means that he has no idea how to value his own house either.
I totally understand that the relevant factors are land size, house size, house age, house condition, location and tax burden. I also know that there is no magic formula to coming up with a valuation.
I am just wondering of there is some resource or literature (in English and/or Japanese) about how people or real estate agents go about coming up with a valuation.
He sort of mumbled that he paid 3900man (39 million) to have the place built. We sent the blueprint info to our architect friend and without seeing the house in person for himself, he guestimated 1700-1900man (17-19 million) would be a good starting point.
Appreciate any insights!