Determining the Value of a Property
The best way to determine property values is to monitor the sale of similar
properties in the same geographical area. This way you can track how much a
home is listing for, how quickly the home sells, and at what price. Your real
estate agent can usually provide information like this to you and save you
time. This is your money on the line and it is important you educate yourself
as much as possible. The seller will have an asking price on his house. You,
the buyer will have an offering price. The negotiated end result will be the
final purchase price of the property. What the seller may have paid for the
house originally, and how much they would like to get doesn’t matter. If the
seller is sticking to some unrealistic image of the value of his property, you
should just move on. The price a buyer will pay and seller will accept for his
house if neither party is under duress is known as the "fair market
value". Duress can come from different sources. If the sellers are going
through a divorce and are selling because they are required to by divorce
decree, they may be under duress. If an appraiser knows that a sale was made
under duress they may adjust the appraised value to conform more to other sales
in the area. Click here to read the full document (PDF). |
