List Price = $800k, Tax Value = $400k As I’ve written previously, a home’s tax assessed value isn’t particularly relevant for establishing a home’s actual, what-will-it-sell-for market value. Rather, fair market value is determined by: a) scrutinizing the comp’s, or comparable sold properties, to set a list price; then b) testing it on the market....Read More
“Fair Market Value,” Defined I, along with thousands of other agents, have developed a scientifically proven, 100% reliable way of establishing a home’s value. Ready? Here’s how you’ll know any given home is priced at fair market value: It sells.* Defining “Fair Market Value” That may seem unduly glib (if not harsh). Unfortunately, for many...Read More
“What’s That House Cost?” — Vol. #42 Want to buy 100 shares of Microsoft? If the last trade was for $25.43, it’s a good bet that you’ll have to pay . . . .$25.43 (or maybe $25.42 or $25.44). Want to buy a nicely updated, four Bedroom Colonial in East Edina? That’ll be . ....Read More
Tax Assessed Value as Benchmark No, I don’t have any hard data backing me up (and don’t have the time to compile it), but at least anecdotally, it sure seems that there’s a correlation between year built/last sale, and fair market value. Here it is: The newer the construction date/last sale, the higher the percentage;...Read More
“East is East and West is West” From experience, here are two good rules of real estate negotiation: Rule #1. Never argue the “comp’s” with the other side. A comp, or comparable sold property, is a similar, nearby home that has sold recently. To determine fair market value, Realtors and appraisers alike typically look for...Read More
Is it REALLY “Below Market Value?” As many Sellers already know, it’s a tough market out there, especially in the higher brackets. So, to let prospective Buyers know that their home is a deal, more Sellers (or their agents) are peppering their marketing with phrases like, “asking price less than market value.” Is it? “That’s...Read More
