If you are concerned about the value of your home,
or a home you are considering purchasing, how do
you determine what the actual value is? Appraisals,
listing prices, and selling prices will not tell
you the actual current value of a property. If the
numbers are all different, who do you believe?
First, you must realize that home values differ
dramatically from the listing prices. In fact, the
listing price is rarely helpful in determining the
value of a property. The listing price is most
often set by Real Estate professionals as a way to
interest the buyer. Or, the listing price is the
seller's ideal price on the property. Neither the
seller's ideal price, nor the Real Estate
professional's price to get you interested are at
all helpful in determining a property's value.
The only real measure of a property's value is a
buyer with cash. The price a buyer is willing to
pay right here, right now is the property's true
value.
Appraisals
are Changing--Don't Use Outdated and Unreliable
Methods!
Banks are aware of the fact that Real Estate prices
have been falling and continue to do so. In order
for you to get a new home loan, the bank will
require that the property be appraised, so that the
lender knows what the property is worth.
Unfortunately, traditional appraisals are not
always helpful in determining the value of a
property.
In our current Real Estate market, value is
appraised using different and more specific
information than just a few years ago. In the past,
appraisals relied on information about sales of
similar properties in the last six months. Now,
because property values continue to decline,
appraisals can only factor in information about the
sales of similar properties in the last three
months.
Traditionally, Real Estate professionals have given
their clients comps--basically guesses at value
which are not based on appraisal principles--but
the rules of Real Estate are changing. Buyers and
sellers are no longer interested in guesses at a
property's value. There are certain perameters
which can more accurately determine a property's
value, without guessing. The old ways of
determining value are not helpful in this current
market. The latest appraisal methods compare
specific property data with properties in a one
mile radius, which can at least tell you what your
property is NOT going to sell for.
Researching
Property Values with the Most Current Appraisal
Techniques
So, while you search the internet for East
Sacramento MLS listings, get someone to research a
property's value using the most up-to-date
appraisal techniques. Don't pay an appraiser to
guess about a property's value.
BlinkList
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