When you’re buying or selling a home, knowing how house values should be determined is in your best interest. Being able to review house values of recently sold homes and understanding how house values are determined will help set an accurate asking price that will bring in buyers.
Here are several tips on the most effecient way to determine property values. First of all avoid using homes which sold more than a year ago. Within the last six months is optimal but definitely only use properties which sold within the past year.
Then consider the neighborhoods typical market peaks and valleys. Some market areas have significant lulls in the winter and peaks in the summer months or just before school begins.
Next, review the properties that have already sold. This will help you focus on the final result of selling your home and give you a good idea of what has really been successful. Using properties that are currently listed on the market can add very little data, but these homes have obviously not sold. Their price could be the reason, so using their pricing to set value may not be an accurate indicator of market value.
Finally, consider the size of your neighborhood when determining the area to use for your search of old sales. In smaller neighborhoods make sure you are researching a larger area. In a smaller community you may need to extend your search because you have a smaller sample from which to find your comps.
Educating yourself, practice, and successful resource tools will make valuing your properties a simple task. Using the property valuation search engine Investor Comps Online provides, and taking a little time to evaluate the data, will give you the most accurate information to select the best deals from REO GoldMiner. And remember better data, better deals, equals better profit$.