The most important thing to know about Real Estate is that IT IS ALL LOCAL – national news is not going to tell you what the conditions are in your neighborhood, nor is the neighborhood across the road necessarily the same as yours. And I also tell my clients, each neighborhood takes a turn “in cycle” – meaning that it is key to watch the trend reports that are available for online activity for specific homes / neighborhoods etc. If you don’t know whats going on in your area and you would like to know – contact Tammy for a complimentary market analysis.
Here’s a portion of the Dayton Daily News article I was quoted in…
Another key factor to home values are the prices recently paid for similar houses in the same neighborhood.
The rule of thumb real estate agents use is to find sales of similar size houses — by number of stories, bedrooms and bathrooms — in the past six months within half a mile. Recent sales prices of other similar homes give agents an idea of the price the market is willing to pay for your house, said Tammy Murphy, a real estate agent for Prudential One, Realtors.
“We of course want to be able to set some level of expectation with the seller as to what the value of the area is showing,” Murphy said.
If there aren’t any comparable sales, agents can go back further in the sales history or look at a wider area.
Sales of foreclosures, short sales and other distressed properties are not supposed to be used. In some neighborhoods there haven’t been any other sales or there have been more distressed sales.
“Which, if you’re looking at a $70,000 house, but all you’re getting is $15,000 sales, it’s going to make a big difference,” Murphy said.
Multiple foreclosures on the same block can impact the value of your house because your house is competing with those lower-priced homes.
But foreclosed homes also can be good deals for buyers.
For the full article, click here.