What To Consider When Determining Property Value

Posted by Jerome Pennix on August 21, 2009

by Jerome Pennix

Whether you’re buying or selling a home, understanding how house values are determined is one of the primary things you need to do. Being able to evaluate house values of recent sold homes and seeing how house values are determined will set an accurate list price that will attract buyers.

Here are a few tips on the best way to determine property values. First and foremost avoid using properties which sold more than a year ago. Within the last six months is best but definitely only include comps which sold within the past year.

Then consider the areas normal market peaks and valleys. Some areas have significant lulls in the cool months and peaks in the warmers 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.

Getting knowledge for yourself, practice, and successful tools will make analyzing your properties an easy task. Using the property valuation tools that Investor Comps Online provides, and allowing a little time to review the data, will give you the most accurate data to pick the best deals from REO GoldMiner. Remember better data, better deals, equals better profit$.

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