Everyone Needs to Know

Due to market inefficiencies, good data, which is essential in property valuation, is extremely difficult and expensive to procure. Due diligence and research is required. Because we operate with limited resources, allocate your time to the factors that most influence the price of your home.

For broad market indicators, make sure you check market statistics provided by the National Association of Realtors (NAR), Office of the Federal Housing Enterprise Oversight (OFHEO) and the S&P Case/Shiller Index. Their methodologies are quite different and reflect different prices. Affordability in regards to current mortgage rates is extremely important as well.

Because Real Estate is non-homogenous, the most important aspect of valuation is to analyze the micro factors which influence the prices in your market area. You must delineate your market area and make a decision as to the duration of current market influences. When using Comparative Market Analyses, make sure you verify which rights were actually sold, conditions of sale, and whether buyers/sellers used typical financing and were typically motivated. Investigate highest and best use possibilities and use the income and cost approach when appropriate. There are a host of factors you need to consider in addition to square footage, number of bedrooms, and location.

Any questions or for FREE customized Market Reports, automatic email updates on properties that fit your criteria, or Realtor Referrals, please EMAIL ME or call me at 734-478-9270. -Anwell Tsai