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Answers (12)
- Reema Sharma, "ReemaSharma"
- Contributions:927
Recent sold homes
- Nicholas Ribeiro, "NicholasRibeiro"
- Contributions:1807
3 Sold comps and 3 Active comps will give you a good range to start with.
- Sergio Hernandez, "Sergio Hernandez"
- Contributions:619
The local real estate market and the condition, location and style of the property.
- Vince Curtis, "SoCal Appraiser"
- Contributions:4699
But how do you rfeally know the value if you are not wanting to sell right then? Because then you don't have a buyer. Maybe it doesn't really matter, but I would like to know for my own curiosity.
Value is based on sale comparables as noted by others, as well as what is on the market currently (active and pending listings).
Value is what a home similar to yours - not necessarily yours if you dont intend to sell right now - would sell for in an open market with a typical marketing time. My home is worth X but I would not sell for that, but that still means its worth X, based on the principle of substitution.
Value is based on sale comparables as noted by others, as well as what is on the market currently (active and pending listings).
Value is what a home similar to yours - not necessarily yours if you dont intend to sell right now - would sell for in an open market with a typical marketing time. My home is worth X but I would not sell for that, but that still means its worth X, based on the principle of substitution.
- William Bierlein, "William Bierlein"
- Contributions:5
Comparables in your area that closed in 30-90 days! Also, what is currently on the market? You want to be in line with those listings so you ddecrease your competition.
- Stephanie Crawford, "AgentSteph77"
- Contributions:158
- Clay Branch, "Georgia Loans"
- Contributions:7832
I have to take issue with the 12-18 month comps, that was a lifetime ago. Within 30 days would be ideal, 60 days good and within 90 days for a 3rd or 4th comp.
DanceDoc, it is going to change, maybe higher or lower, so it really doesn't matter if you are not ready to sell. But, since you are curious, try putting your zip code in google along with Recent Sales, then look for several sales in the last 60-90 days with similar sq ft, BR/BA, etc
DanceDoc, it is going to change, maybe higher or lower, so it really doesn't matter if you are not ready to sell. But, since you are curious, try putting your zip code in google along with Recent Sales, then look for several sales in the last 60-90 days with similar sq ft, BR/BA, etc
- DanceDoctor
- Contributions:7
But how do you rfeally know the value if you are not wanting to sell right then? Because then you don't have a buyer. Maybe it doesn't really matter, but I would like to know for my own curiosity.
- John Taylor, "JohnATaylor"
- Contributions:17
In short the answer to this question is the market. By that I mean what is a buyer willing to pay for your property. Some of the factors that go into determining the value of your home is location , type of property, when built, upgrades, and condition are a few of the things that go into determining value. Also price is determined by what other comps. are on the market and what comps. have sold in the last 12 to 18 months. This will give you a pretty good measuring stick of what your homes value is.
Contact a Realtor for more in depth help!!
- Stephanie Crawford, "AgentSteph77"
- Contributions:158
Wow. Allen, that's quite a thorough answer. Great job!
Remember that Zillow Zestimates are just generalizations based on statistical analysis. I find that the most factual figures these days come from analyzing the nearby recently SOLD homes. Active comps don't really mater these days... at least not to appraisers.
Of couse, it really depends on whether you're in an older, established neighborhood or a newer-construction area where homes tend to be more similar.
What's your neighborhood?
Remember that Zillow Zestimates are just generalizations based on statistical analysis. I find that the most factual figures these days come from analyzing the nearby recently SOLD homes. Active comps don't really mater these days... at least not to appraisers.
Of couse, it really depends on whether you're in an older, established neighborhood or a newer-construction area where homes tend to be more similar.
What's your neighborhood?
- IAgentRealty
- Contributions:79
Ultimately what your buyer is willing and able to pay. This question can be debated but will likely depend on the appraisal report to answer. If you are considering a list price, you would use the recent activity of similar homes on the market.
" The fair market value is determined by comparing the item of interest to others in the same category or of a similar nature. Real estate is valued through the use of an appraiser who is paid to determine what a fair market value is on a property before a final transaction takes place. Lenders will not agree to financing unless they have an up-to-date fair market value for the property being purchased. An appraisal is made by gathering facts about the property---condition, size, number of bathrooms and bedrooms, extras like pools, garages, workshops---and then comparing this information to the recent selling prices of others in the same category. A simple way to obtain a general fair market value is to gather information on similar properties and compare the asking prices. A lot of important information is left out of this simple solution, but it can assist in getting a general idea for budgetary purposes."
- Allen Perry, "allenperry"
- Contributions:543
1. Condition of the property – Obviously, this is the number one thing that effects the value of a property. The important thing to remember here is that even if a home is well maintained, that doesn't mean that it is up to the current standards of what is most desired by current home shoppers.
2. Location – People always say the 3 most important criteria in finding a home should be Location, Location, Location. This is so important and I can't emphasize that enough.
3. Financing – Is financing readily available for the resale of your property. This has impacted condos tremendously just in the past few months. Many condos are now having problems getting financing due to a new regulation that does not allow conventional or FHA loans to be done on any unit that has someone in the complex that owns more than 10% of that building.
4. Supply and Demand – This is the most basic of principles. The higher the supply of similar houses on the market, the lower the value your house will have. The more supply that is on the market, the more people will have to cut prices to sell their home. The opposite is also true, if there is very little supply of similar houses on the market, then you can demand more of a premium for your home.
5. Foreclosures or Short Sales – This has become a very common part of the market over the past couple of years. As the number of foreclosures and short sales has increased, the value of many properties have decreased as well.
6. Tax Credits – The tax credits of the past few years has changed the market dramatically. The number of homes sold has drastically increased due to these credits.
7. Surrounding Developments – Many times a properties value will increase or decrease due to the commercial or residential developments around it. This can have a positive or negative impact.
8. Natural Disasters – This is something that has obviously impacted nashville greatly just in the past few months. Since the flooding at the beginning of May, many homes have not been rebuilt and even houses in neighborhoods that had some flooding have been affected in resale value even though they may not have been affected by the flood themselves.
9. Job Market – Ultimately, home prices are driven by the average income in given geographical areas.
10. City Obstructions or Restrictions – Everyone knows that they don't want to have an interstate in their backyard or that they don't want the noise of a train waking them up in the middle of the night. But the other factors of the city can be equally important are current zoning, utility easements, your lots building window, or historic commission restrictions.
2. Location – People always say the 3 most important criteria in finding a home should be Location, Location, Location. This is so important and I can't emphasize that enough.
3. Financing – Is financing readily available for the resale of your property. This has impacted condos tremendously just in the past few months. Many condos are now having problems getting financing due to a new regulation that does not allow conventional or FHA loans to be done on any unit that has someone in the complex that owns more than 10% of that building.
4. Supply and Demand – This is the most basic of principles. The higher the supply of similar houses on the market, the lower the value your house will have. The more supply that is on the market, the more people will have to cut prices to sell their home. The opposite is also true, if there is very little supply of similar houses on the market, then you can demand more of a premium for your home.
5. Foreclosures or Short Sales – This has become a very common part of the market over the past couple of years. As the number of foreclosures and short sales has increased, the value of many properties have decreased as well.
6. Tax Credits – The tax credits of the past few years has changed the market dramatically. The number of homes sold has drastically increased due to these credits.
7. Surrounding Developments – Many times a properties value will increase or decrease due to the commercial or residential developments around it. This can have a positive or negative impact.
8. Natural Disasters – This is something that has obviously impacted nashville greatly just in the past few months. Since the flooding at the beginning of May, many homes have not been rebuilt and even houses in neighborhoods that had some flooding have been affected in resale value even though they may not have been affected by the flood themselves.
9. Job Market – Ultimately, home prices are driven by the average income in given geographical areas.
10. City Obstructions or Restrictions – Everyone knows that they don't want to have an interstate in their backyard or that they don't want the noise of a train waking them up in the middle of the night. But the other factors of the city can be equally important are current zoning, utility easements, your lots building window, or historic commission restrictions.
What Determines the Value of Your Home?
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