Posted by admin on Feb 24, 2010 in Real Estate Blog - Naples Luxury Homes | 0 comments
Obviously, the most valuable information when looking at comparable sales would be the most current sale possible. A sale last week has more validity in helping you determine a purchase price than a sale from six months ago. The problem is that there is no actual record of the sales price until the transaction is completed. The information is not available in the public record because no deed has yet been recorded.
Neither is the information available in the Multiple Listing Service. Once a property is sold, it becomes a “pending sale” and all pricing information is removed from the listing. Prices are not posted until it becomes a “closed sale.” This protects the seller in case the transaction falls apart and the property is placed back on the market. It would give an unfair advantage to future potential buyers if they already knew what price the seller had been willing to accept in the past.
The listing agent can only divulge the contracted sales price if the seller agrees to allow it.
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Posted by admin on Feb 24, 2010 in Real Estate Blog - Naples Luxury Homes | 0 comments
Most of the public is aware that the Multiple Listing Service is a private resource where Real Estate Professionals list properties available for sale. Recently, the public has been able to access some of that information on such sites as Realtor.com, Zillow.com, Trulia.com and others.
Once a property is sold and the transaction has closed, the selling price is posted to the listing in the Multiple Listing Service and eventually on the public property records for the county.
Over time, the MLS has become a huge database on closed sales, containing much more information on individual homes than can be gleaned from the public record. This information is only available to real estate agents who are members of the local Multiple Listing Service.
Your agent can provide you with the closed sales data from the local MLS to help determine your offer price.
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Posted by admin on Feb 24, 2010 in Real Estate Blog - Naples Luxury Homes | 0 comments
The most accessible source of information on comparable sales for the public are closed sales is the county’s public record system. The public records include all sales, even ones that don’t go through Realtors and are thus not entered into the MLS.
When someone buys a home the property is deeded from the seller to the buyer. In most circumstances, this deed is recorded at the local county recorder’s office. They combine sales data with information already known about the property so they can assess property taxes correctly.
The information available from the public record is usually correct regarding sales price, square footage, and numbers of rooms, but additional details that available in the MLS are not readily available on public records.
Accessing the data is another matter, at least for the general public. Real Estate Professionals can generally look up this information through their MLS system. The public can access the information through certain county websites. For example, in Collier County, Florida everyone can access closed property information using the Collier County Appraiser’s website.
One problem with the public record is that it tends to run several weeks behind. Data from the MLS is almost immediate. When a property closes it is entered in the same day or close to the actual closing date.
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Posted by admin on Feb 24, 2010 in Real Estate Blog - Naples Luxury Homes | 0 comments
When you prepare an offer to purchase a home, you already know the seller’s asking price or list price. But what price are you going to offer and how do you come up with that figure?
Determining your offer price is a three-step process.
First, look at recent sales of similar properties or comparable sales to come up with a price range. Then, you analyze additional data, such as condition of the home, improvements made to the property, current market conditions and the circumstances of the seller. This will help you settle on a price you think would be fair to pay for the home. Finally, depending on your negotiating style, you adjust your “fair” price and come up with what you want to put in your offer.
Comparable Sales
The first step in determining the price you are willing to offer is to look at the recent sales of similar homes in the area. These are called “comparable sales.” Comparable sales are recent sales, within the last 3 to 6 months, of homes that compare closely to the one you are looking to purchase. Specifically, you want to compare prices of homes that are similar in square footage, number of bedrooms and bathrooms, garage space, lot size and type of construction.
There are two main sources of information on comparable sales, both of which are easily accessed by your real estate agent. It is somewhat more difficult for the general public to access this data, and in some cases impossible. The two main sources are of closed sales data are the public records and the Multiple Listing Service or MLS.
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Posted by admin on Feb 24, 2010 in Real Estate Blog - Naples Luxury Homes | 0 comments
The Business Cycle and Buying a Home
Should you try to time the market? Just like investing in the stock market, the short answer is always, no.
One problem with attempting to time your purchase of real estate to the business cycle is that no one can accurately predict the future.
Why You Should Not Wait to Buy
It tends to equal out. People who already have a home usually need to sell it in order to buy their next one. If a “move-up” buyer wants to buy a home during a depressed market, that means they usually have to sell one during the slower, buyer’s market too. The will get a great deal, but they will likely have to give a great deal as well. On the other hand, if a seller wants to sell his home to take advantage of a “hot” market when prices are fairly high, they generally have to buy their next home during that same hot market. The only other choice would be to rent and wait till prices come down, but then they lose the tax advantage of a mortgage.
Trying to buy at the lowest point of a real estate cycle or sell at the highest point is a sure recipe for disaster. Nobody knows those points until long after they happen. Instead, do your best to buy your home right in the market you’re in and pay down any mortgage as quickly as possible. Don’t be tempted to take out unnecessary home equity lines that deplete your home’s equity.
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