Today’s real estate market is filled with foreclosed and REO sales. In such a situation, determining the true market value of the property has become a difficult task. The most common method used is the method of comparable sales. This is the simplest method and all you have to do is to research information on the properties sold in the area of your choice. This information is available on the websites of all local governments. These websites give you a complete description on the square area of the home, its actual rate and the current legal standings, if any on the property.
Many websites also offer a property evaluation that is computer generated. This method is called automated validation as it determines the estimated price based on aggregate sales. The value generated by this method may have an error range of 3 to 5 percent. The internet is a large database for all your property evaluation queries. However, the most useful and powerful database is the local MLS. This database has details about when the property was put on sale, the starting selling price, buyer negotiations if any, whether the seller was ready to negotiate, etc,. The local MLS is regularly updated by the local realtors.
You can evaluate your property either on the local MLS or by making use of the computer sales available on the internet. Irrespective of the method employed, there are a number of factors to be considered. The most important of them are the location of the property, square footage and the number of rooms. While evaluating property you must look at houses within a radius of one mile or less for comparison with your property. Irrespective of the square footage of the property, there is a fixed price for each property based on the land value, construction costs, subdivision plans, sewer, etc. Hence it is wrong to evaluate that if a 1000 sq ft property costs $100000, then an 1100 sq ft property will cost $110000. More relevant to property evaluation is the number of rooms in the property. That is, in the case of two houses on a 1200 sq ft area, one with two bedrooms and another with three bedrooms, the three bedroom property will cost more.
Other factors that affect the price of a property include the garage facilities, neighborhood and trend of selling price of properties in the targeted locality.
For additional resources and information please visit the following sites.
Bill Fields All Star Coaching Program: http://www.AllStarCoaching.net
GreatWest GMAC Search all MLS Listings: http://www.LocalHomeLink.com
GreatWest GMAC Consumer Buyer/Seller Blog: http://www.GreatWestBlog.com
T. Sami Siddiqui (Broker/ Owner) Buzz About Sacramento Blog: http://www.samisiddiquiblog.com
Brodie Stephens (Executive Vice President) One Stop Blog: http://www.brodiestephensblog.com
GreatWest Podcasts- Weekly Updates on new REO, Short Sale, Bank Owned Foreclosure Listings: http://www.HouseTalkOnline.com
GreatWest Videos: http://www.youtube.com/brodiestephens
Facebook Brodie Stephens Profile Page: http://www.facebook.com/brodiestephens
Facebook GreatWest Profile Page: http://www.facebook.com/searchmlshomesforsale
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GreatWest Real Estate Careers- GMAC is looking for Professional Realtors to Join Us: http://www.CareersWithUs.com
Global Employee Relocation: http://www.employeerelocation.blogspot.com
Apply for a Loan: http://www.choice1funding.com
ActiveRain Blog Brodie: http://activerain.com/blogs/brodiestephens
ActiveRain Blog Company:http://activerain.com/blogs/greatwestgmac
Company WordPress Site:http://www.thehomeholders.com