Estimating Property Value: How We Determine the Right Price.
Today we are discussing how real estate agents determine the market value of a property. Market value, or fair market value, is the price that a property is estimated to be valued and should sale for. Remember that we are NOT appraisers. Buy focusing on the right metrics for estimating property values will help avoid issues when the appraisal takes place. First, this is the most common approach I utilize. I start reviewing recent sold, expires, pending, and active sales in the area. Distance from the subject property and time frame it’s all market dependent. I focus on several key metrics when it compares to the subject property: location, sq footage, age of the property, # bed/bath, lot size, and more. There’s a small +\- range to each metric, because comparable aren’t always perfect and can be hard to identify. Second, i analyze the condition of the homes as it compares to the subject property. Knowing how much it may cost to bring the property up to date can also be taken into account when estimating market value. This form of evaluation is typically important to investors looking at value add opportunities. Finally, external factors in the local market may apply. If the local economy is thriving, they may estimate higher values than in a depressed economy. Other external factors, such as anticipated development nearby, may also be taken into account. Again, this is mainly a more important metric used for investors types of clients. There are a ton of more types of evaluations, especially on the commercial side, but I won’t be touching base on that.
Buying or Renting?
If you're considering whether to rent or buy a home, consider the long-term benefits of making the purchase. Homeownership offers stability, equity, tax benefits, and gives you the opportunity to build wealth over time. Additionally, owning a home gives you the freedom to customize and improve the property as you see fit. When you purchase a home, you build equity every month with your mortgage payments. This means that you can use this money, if need to, to borrow against your home’s value for investments, repairs, home improvements, or other needs. Homeownership also offers tax benefits. Your mortgage interest and property taxes may be eligible for deductions which can lower your taxable income. Finally, home ownership is likely to increase your net worth over time. Depending on market conditions, the value of your home may increase. This can provide a significant long-term financial benefit. If you're looking for a stable and secure investment for the long-term, buying a home is likely to be your best move. However, despite all of these benefits, there are other circumstance that might make renting more beneficial to you. To truly know what best option you, we need to have a one-on-one discussion to look at all variable and make an educated decision.
Buy a Home With Confidence: Benefits of New Construction!
What’s up everyone, if you’re looking to by a home, considering new construction homes can provide benefits that make for a more satisfying home buying experience. First, New construction homes come with many advantages that can lead to greater peace of mind. Knowing that the home you are buying is brand new can help to ensure that everything is in working order, from the electrical wiring to the plumbing. It also means that you won’t have to worry about costly repairs or renovations that can come with an older home. Now, just because it’s new construction doesn’t mean you’re on the clear to the above, so perhaps consider getting an inspection done by a third party to rule out imperfections or potential repairs that need to be addressed and fixed. Second, New construction homes often offer warranties which can cover certain aspects of the home including appliances, plumbing, and even structural elements. Having a peace of mind knowing you are covered in the event of any unforeseen issues is invaluable. Third, Many new construction homes are built with energy efficiency in mind and latest safety codes. This means that you could be eligible for tax credits and other incentives. In addition, energy efficient features such as low-flow plumbing fixtures, energy efficient windows and insulation can result in lower energy bills each month. Lastly, sometimes new construction builders offer amazing financing incentives when utilizing their in-house lender, from rate buy down options, flex cash to use for updates, to thousands of dollars in closing costs. When it comes to purchasing a home, considering a new construction home can at times yields more benefits than buying an existing home. Between warranties, energy efficiency, safety standards, design options, and financing incentives, you could end up with a more satisfying overall experience and a great place to call your own.
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