2006-09-12 15:28:34 · 10 answers · asked by blazersxd 1 in Business & Finance ➔ Renting & Real Estate
Prices in other areas, REALTOR.com How much your house will be worth in two years....see a fortune teller.
2006-09-12 15:30:42 · answer #1 · answered by Stan the answer Man 3 · 0⤊ 1⤋
There is no real way to look two years into the future and derive a price for you. Every market is different and your home is as unique as you. Websites that automatically calculate a price for you, do very general searches and are not as reliable as local reasearch. A minimum of 3% increase in value in a slower market is feasible. Contacting a local Realtor would be the best way to get advice about the type of improvements you can make to your property that will likely increase its value.
2006-09-13 00:35:56 · answer #2 · answered by monrovian21 2 · 0⤊ 1⤋
Prices of houses in other areas (I presume now) realtor.com has asking prices, the county will have actual sales prices.
Prices of property in the future: If I (or anyone else) could tell you that with any degree of certainty, we'd be multi-billionaires. We can project short periods based upon current trends and likely changes in the market, but that's a far cry from certain knowledge.
2006-09-12 23:21:46 · answer #3 · answered by Searchlight Crusade 5 · 0⤊ 1⤋
http://money.cnn.com/2006/09/08/real_estate/caught_in_the_bubble/index.htm?postversion=2006090814
http://money.cnn.com/2006/09/05/real_estate/Ofheo_home_prices/index.htm?postversion=2006090514
May be 20% lower.
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How to value a property during market downturn?
Housing market continues to slump. Now we can calculate true value of a property easily. As price decline, we don't need to guess and factor in the potential price appreciation while calculating home value. Without the guesswork, figures are more accurate.
Let's use following example:
Today, a typical 15 years old, two bedrooms condo/townhouse is priced around $500,000 and $550,000 in Sunnyvale, California. Rent for similar condo/townhouse is $2000/month.
If you are a home owner, $2,000/month in rent means $20,000 a year in profit ($24,000 per year in rent, minus $4,000 maintenance costs). A $20,000 income is equilevant of owning $400,000 bonds or CDs, because current yield of 30 Years U.S. treasuries are 5% (5% of $400,000 is $20,000). Bank CDs have similiar yields.
In our example, the two bedrooms condo/townhouse is 20% to 25% overpriced. They should be priced at $400,000.
It is interesting to note that if we redo the calculation from buyer's perspective instead of seller's perspective, the figures are even more shocking.
Mortgage payment consists of two parts: mortgage interests and mortgage principal. The interests portion is similar to rent. If you pay interest, it disappears and doesn't add equity to the property. To fully simulate characteristics of renting, we assume buyer will apply for a zero down, interest-only loan.
It turns out that rent of $2000/month is equivelant to mortgage payment of a $340,000 loan at 7.0% APR. And comparing $340,000 loan to $500,000 or $550,000 price tag, from buyer's view, the two bedrooms condo/townhouse is 30% to 35% overpriced.
One may ask, why is there a discrepancy between two perspectives of the buyer and owner?
The discrepancy is a result of 2% differences in interest rate that buyer borrow comparing to yields of bonds and CDs that owners would get. We understand that buyer would always pay more. That is the premium of buying to own. However, looking from home owner's perspective, current housing market is probably 20% to 25% overpriced. We recommand investors to wait for a better entry point.
2006-09-13 03:47:50 · answer #4 · answered by Price is what you pay for value. 3 · 0⤊ 0⤋
Take the value of your house = $
The rate of appreciation could be 3% to 20% per year.
$*(1+6%)^2 = Future Value
I'd say you'd better using a 6% appreciation rate. The national average had been 12% for the last couple of years.
2006-09-12 22:37:19 · answer #5 · answered by Anonymous · 0⤊ 2⤋
There is simply no way for you to know. Yes there are averages and formulas out there but each house is a unique product.
Take good care of the home, maintain it, clean it, paint it etc. and it will take care of you.
Joe Ballarino
http://www.AmerivestRealty.com
2006-09-12 22:40:45 · answer #6 · answered by Joe_Ballarino 3 · 0⤊ 1⤋
I dont know of anywhere you can accuarately project the housing market. But you guess you can increase your purchase price by the rate of inflation and see what that gets you.
2006-09-12 22:30:54 · answer #7 · answered by limgrn_maria 4 · 0⤊ 1⤋
If you are thinking about property investments, then you should consult the professionals. Check with the housing agents or Internet.
2006-09-12 22:32:36 · answer #8 · answered by Madinahbi Binti Abdul Hamid AHM 2 · 0⤊ 2⤋
houses are going cheap here between 75 and 100 for a decent house
2006-09-12 22:30:57 · answer #9 · answered by Anonymous · 0⤊ 2⤋
zillow.com
2006-09-12 22:30:48 · answer #10 · answered by JtoJ 4 · 0⤊ 0⤋