Use Real Estate Comps to Valuate Property in Fluctuating Markets

Home values are continuing to slide in much of the country, as a result of the declining real-estate market and credit crunch. Yet research indicates most people still think their property is worth more than it is.

How then, can you get a realistic idea of your property’s value to prepare to sell quickly and for the best profit? Using real estate comps of course.

First, recognize that the median value of existing homes nationwide dropped 4.6 percent nationwide between January 2008 and January 2009. That’s according to the National Association of Realtors (NAR). One major reason for this decline is a slowdown in sales in high-cost markets.

On the other hand, year-over-year median prices rose in roughly half of U.S.metro areas, NAR said. The group’s chief economist, Lawrence Yun, speculated that some markets where home values had been weakening are turning the corner.

Always check with InvestorCompsOnline.com to review resent sales activity in your area before listing or advertising your properties for sale.  Researching prior to purchasing is always the best bet, but after you have purchased your property, you should run a report again to ensure that the property is priced right and in line with any changes your neighborhood may have undergone since purchase date.

Searching real estate listings and visiting open houses in your neighborhood can also help you get a feel for your local real estate market. Pay attention to what happens to those listings. Homes that stay on the market more than a few weeks might be priced too high.

Remember, InvestorCompsOnline.com recommends comparing your property to current sales of similar age, square footage, and room count.  The key word here is “current.” If nothing else, recent housing market fluctuations have shown that property can be worth one amount one day and something else the next.

All the best,

MJ