Tuesday, August 14, 2012

First Time Buyer FAQ Series: What's the true value of this property?

Here's another question I get asked frequently, particularly when writing offers:

What do you think the value is of this property?

My answer: The short answer -- there are comps off which to base the value of a property -- depending on how similar the property is, and how recently the property was sold. Since that market value shows what a previous buyer and seller had valued the property for, that's what the approximate market value is on the property in question as well.

Here's my long(er) answer -- comps are a great way of assessing what a property will sell for, but there are times where the comps just won't cut it. How can you price out exactly how those updates improved the value of a property?? How can one say for certain that a property is only worth "X." You can't. So ultimately the true value comes down to what a buyer and seller are willing to purchase/sell the property for.

Caroline Choi Real Estate

Caroline Sells The City LA

www.CarolineSellsTheCity.com

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