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All the homes on my street are similar and on the same size lots. In fact the neighborhood we are in, meaning a 10 block area of homes with 20 homes on a street, all built in and around 1962. All are either 3 bedroom 2 bath, 3 bedroom 2 and a half bath, 4 bedroom 2 and a half bath, and the occasional 5 bedroom 2 and a half bath. Very few of the homes are much differant than the others. Which is unique and that you would think many more people would have added on to the homes. All are under 1,700 square feet. I bring that up because all things being equal, all things are almost all equal.
What are the factors that help you figure the value of a home and determine the equity that the home has.
All the homes on my street are similar and on the same size lots. In fact the neighborhood we are in, meaning a 10 block area of homes with 20 homes on a street, all built in and around 1962. All are either 3 bedroom 2 bath, 3 bedroom 2 and a half bath, 4 bedroom 2 and a half bath, and the occasional 5 bedroom 2 and a half bath. Very few of the homes are much differant than the others. Which is unique and that you would think many more people would have added on to the homes. All are under 1,700 square feet. I bring that up because all things being equal, all things are almost all equal.
What are the factors that help you figure the value of a home and determine the equity that the home has.
Since as you said, all things are almost equal, run comps and then consider the "not equal" portions of your home, beneficial or a detraction. Then it is what it would sell for vs what you owe. That is your equity. Fees and such to see aren't something to factor as while they must be paid, that has nothing to do with equity.
we do not plan to sell. Still, a few neighbors were talking because of a recent sale in the neighborhood. A woman listed her home for $349,900 last month. Within a few days she had 17 offers on her home, a home that she inherited from her aunt the person who bought the home new in 1962. Of the 17 offers all were close to or above the $349,900 mark with two full price offers, 2 that were $350,000, Several in the $360,000 range, another for $365,000, one offer of $380,000 and a $385,000 offer. The $385,000 offer was rejected because the owner would have to hold a note on the home and she didn't want to do that. She did accept the $380,000 offer though.
I was first amazed at all the people that showed up during her 1st week on the market. When we bought in 2010 few people were buying homes. I think that the only people that looked at ours were other realtors. Now lots of people are looking and putting down serious offers on homes in our area. For a while homes were on the market for months or over a year and no bites, now they are not staying on the market long at all.
So what I am wondering: Just look at the comps then? Is that all we need to do to get an idea? For example we paid $310,000 for our home and owe about $260,000 for the home now. Does that mean our home is close to the $380,000 mark or did some people just give a large offer just to get the home. From her bids it looks like the market would bear a sale price within the $360,000 range very easily, this compared to the people that placed offers on our neighbors home. $380,000 seems to be an outlier that I guess could affect the comps, but would that set a new price point as well or is it just a luck of the draw?
This is all acedemic because we love our home and plan on staying.
Does Zillow or any of the other sites list the last sales price of homes in an area or just what those sites think that the homes are worth? I was not thinking my home is worth $380,000 even because someone thinks another home is worth that amount. To me our home is worth maybe what we paid for it.
How about contacting the RE agent you used when you bought the house and ask them for a list of comps SOLD in your neighborhood? For a down and dirty estimation, take the SOLD price of the comps, subtract what you owe and there is your equity. Equity is based on current home value, not on what you paid or how you paid. Negative equity is when a home price is lower than what they owe. Equity is when the home price is more than what they owe. Some people will use negative equity when talking about what they purchased it for versus current market value, but it really is just the current value of the property versus current money owed.
Does Zillow or any of the other sites list the last sales price of homes in an area
Yes, it does. Use the filters.
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Use the filters
