How Do You Get a Good Market Value on Things?

This is something that many people are unsure of... There may not be a lot of information out there on how to get a good market value on things. Say your area has been a really fiery hot market for a couple of years with property values going up in the double digits. Say you have just started in the business. Maybe you are even working on your first deal and you might be feeling a bit apprehensive about how to really know how to get a good market value on things. Keep in mind the market has really slowed down and they say it might be going up maybe four or five percent now instead of the double digits (in the past it was as high as 14 or 15 percent).

Here is what you need to think about. If you are in an area where people might be retiring to (i.e.-Florida) you could be sitting on a goldmine. Think about it-baby boomers are retiring at a fast rate. And in the next couple of years, that rate will double or triple! Of course not all baby boomers are going to retire south, but many are. And not are you trying to cash in on this area, but so is everyone else!

And let’s be realistic. Yes, there are markets out there that are considered bad, but let’s face it, if you have a growing area filled with baby boomers, the decline will not occur until they do. As far as finding out the value, just go with the local comps that are listed with the MLS. What you can’t do is bet on the market continuing to appreciate at the rapid rates that it has. So what can you really do in this situation?

It boils down to this. What you need to do is be realistic. I would not go buy a $200,000 house hoping that it was going to be worth $250,000 at the end of the year. If someone owes 200 and it is 200 you are going to have to think about where you are going to make some money in there. Buying property based on possible future appreciate is not the best plan.

In the end, you need to make sure you are highly educated in the area, about the property, and in the market. You also need to be careful whom you listen to. That can make you or break you!