In our last post Boone Homes exposed two very important demands in establishing the fair market value of the Richmond custom homes that you own or are looking to purchase. As a matter of review, we discussed how it was imperative to compare your homes to similar homes in a like geographic setting. Today we will expose the last two demands.
Demand number three: Fair market demands a home that is for sale should be compared to other recent sales: An indication of where the housing market has been is in the history of recent sales. Homes that have sold in the last 90 days will carry more value and sway than homes that have sold in the 12 months. The picture of the last 12 months will give you an indication of where the housing market is headed, but it will still only speak of history. For example, in most areas of Richmond the market has been declining, revealing a buyer’s market. Recently, the metrics for these same neighborhoods have been revisited to show moderate increases. Though we are far from a seller’s market, the data seems to indicate that prices have stabilized or are on the rise.
Demand number four: Fair market demands that variations in features, quality and location be compensated for with price adjustments. If your home is not located in a planned community, the value should be less than that of a home in a community with pool, tennis courts, sidewalks and parks. Similarly, Richmond new homes are going to be in much better condition than any used home.
Though there may be more details involved completing a market analysis of your home, these four metrics will help you conceptualize the demands on correctly pricing your home for sale or establishing what to pay for the next home. We certainly hope you will consider a new Boone Home when you are ready to buy another home.