Expert Q&A Archive
How can I tell if there’s any more value in an area or in a property?
Is there a way to determine whether or not there’s any more value in an area or value in a property? For example: I happen to live in an area (New York) that has change (property values have increased) dramatically in the last ten years/. Is there any way for me to assess whether or not there’s any more value in buying in this area?
Lisa A. Arcangeli:
expert info »
If values are increasing it could be because there are more buyers
than there are homes available (supply and demand.) The area could also
be more attractive because of low real estate taxes, good schools, and
low crime. They all play a factor in making an area more desirable.
Looking at some of these reasons could provide you with the information
you're looking for.
A real estate appraiser determines the market value of a home by
comparing similar homes in the same neighborhood or a similar
neighborhood that have sold in the past 6 months, making adjustments for
some of the differences in the properties. Usually three comparables
are used in an appraisal report to show the range of value. So
basically what people are willing to spend for a similar home in a
similar location is what is considered the value.
Realtors list homes for sale using the same method.
If you are trying to determine your home’s value, you can watch what
other similar homes in your neighborhood are selling for, or ask a
Realtor for a market analysis. The Realtors often have been in the
different properties and can see how the condition and quality of the
homes compare to yours. Or you can pay a real estate appraiser in your
area to prepare a full report for you.