Zillow Advice: Moving - i WONT TO KNOW IF THE HOUSE THAT I'M LOOKING AT IS WORTH WHAT THEY ARE ASKING FOR IT?

Look up past sales history ...

Sun, 07 Jun 2009 09:04:00 GMT

Look up past sales history of home or near by similar homes.
Find what homes were selling prior to the bubble, say 1997.
and add inflation for the past 10 years or so... which is around
30-35 percent. Over the long run homes only appreciate at rate
of inflation.

Check out the charts for LA... other charts for metros are provided.

http://www.housingbubblebust.com/OFHEO/Major/SoCal.html

What is the trend in that ...

Sun, 07 Jun 2009 02:01:00 GMT

What is the trend in that neighborhood? Either way, holding the line or falling prices, I see no reason to pay full price in todays market climate. If you do have sales price at full amount at least ask for closing costs from the seller. Your home inspection and any repairs needed will also factor into the equation at some point.

You also should want to know ...

Sat, 06 Jun 2009 22:15:00 GMT

You also should want to know what it might be worth in another year or two. If your trend in values is dropping as is th ecase in many areas, do you want to owe more than it will be worth in just a few months or a year? A market analysis is a snapshot of value today. It does not consider tomorrow.

If you are working with an ...

Sat, 06 Jun 2009 22:11:00 GMT

If you are working with an agent, he or she will be able to run a comparative market analysis to show what comparable properties in the area are selling for.