[Bonanza]

Originally Posted by pivo

To get an idea on price check the listings for your area and type of home and judge your price, the market depends on what the buyer can afford not the price, if you can afford a bigger home you like you buy. if not then a less expensive.

also check the houses bough in your area and get a complete price plus taxes, etc.

Sorry, but you are wrong on all counts.

Looking at the price of listed properties tells you nothing.
You have no way of knowing if each individual house is priced right
or if it is overpriced.

Most people cannot tell anything by guessing at what the type of home is,
unless you've been in the house and know the details.

The market does not depend upon what a buyer can afford.
The market is determined by properties that have sold and closed.
It is closed sales and only closed sales that determine what the market is.

[JB in TV]

Originally Posted by Bonanza

Sorry, but you are wrong on all counts.

Looking at the price of listed properties tells you nothing.
You have no way of knowing if each individual house is priced right
or if it is overpriced.

Most people cannot tell anything by guessing at what the type of home is,
unless you've been in the house and know the details.

The market does not depend upon what a buyer can afford.
The market is determined by properties that have sold and closed.
It is closed sales and only closed sales that determine what the market is.

With all due respect, I beg to differ with you. The "market value" of a property is determined by many factors, only one of those factors is closed sales. Another factor is what a capable and willing buyer is willing to pay for said property.

In a rapidly increasing market, the price of prior sales is not a true indication of a properties values, and in a rapidly declining market the same applies. Appraisers have a difficult time justifying the value of a particular property in either of these conditions.

You are right when you say that the market does not depend upon what a buyer can afford, of course... however I suspect that the poster who mentiond that really meant "what a capable and willing buyer is willing to pay"

[pivo]

Thanks JB that's what I meant take everything into consideration and you shpuld come up with a fair price for seller and buyer. wheww

[Bogie Shooter]

OP was a rant about sign's not how to determine the value of a home.

[graciegirl]

Originally Posted by Bogie Shooter

OP was a rant about sign's not how to determine the value of a home.

Sometimes we just can't choose which rant to respond to on this forum.

[Xavier]

Originally Posted by Bogie Shooter

OP was a rant about sign's not how to determine the value of a home.

... and an almost unintelligible rant at that!

Xavier

[Bonanza]

Originally Posted by JB in TV

With all due respect, I beg to differ with you. The "market value" of a property is determined by many factors, only one of those factors is closed sales. Another factor is what a capable and willing buyer is willing to pay for said property.

In a rapidly increasing market, the price of prior sales is not a true indication of a properties values, and in a rapidly declining market the same applies. Appraisers have a difficult time justifying the value of a particular property in either of these conditions.

You are right when you say that the market does not depend upon what a buyer can afford, of course... however I suspect that the poster who mentiond that really meant "what a capable and willing buyer is willing to pay"

To clarify -- I was not speaking about a single property when I referred to market value. You will note that I said "closed sales" (plural).

When all the factors have been taken into consideration (square footage, updates, landscaping, obsolete factors, number of bathrooms & bedrooms, area etc.) an appraiser or Realtor can get an average and then apply a price range for an individual property, regardless of an up or down market.

We haven't seen a rapidly up or down market in a number of years, but in a case such as that, lenders, appraisers and savvy Realtors will adjust the time frame of sold/closed properties to reflect the changing market.

[slipcovers]

It's all about SUPPLY & DEMAND.