Wriver82, Home Buyer in

I should have been clearer, if market value is what it's worth why is the listing price so much higher on many of the home I see on the site.

Asked by Wriver82, Sat Feb 9, 2013

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This question was asked from this property: http://www.trulia.com/property/3107737467-26753-Lost-Woods-C…

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Tracy Hoyt’s answer
WRiver82,

The market value listed on the home you supplied is coming from the property tax office. They use different criteria to determine the value of a home. The Selling Market Value of a home is based off what homes in the area near the home have sold for in the previous 90 days. You do not want to go back or stray to far away because then the data will not be correct.

Listing prices are set many ways but the best way is to do a Comparative Market Analysis of the homes that have sold. Not homes listed but ones people actually bought. I would find a great Realtor in your area and have them guide you. They will know the correct value of any home you would consider buying.

If you do not know any Realtors in the area and would like a recommendation I would be happy to help. Please review my profile on Trulia and message me or send me an email at Thoyt@prutropical.com

No pressure, just help.

Tracy Hoyt
Realtor
Prudential Tropical Realty
1 vote Thank Flag Link Sat Feb 9, 2013
As a distressed sale(foreclosure in this case) this home should be considered at the bottom of the value range and is being sold "AS IS." The condition of a property and risk that purchasing a distressed property brings with it is often compensated in the price of the home.

Factoring together foreclosures and short sales with regular sale can be tricky business.
0 votes Thank Flag Link Tue Feb 26, 2013
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Because the realtor and/or buyer know values are going up at as much as 6% maybe more and they may be getting ahead of the market.

Actually a smart tactic if the seller does not have to move quickly.

However, if you're getting a loan to purchase the property, that appraisal will generally bring things down to reality.

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0 votes Thank Flag Link Tue Feb 26, 2013
Do not use a RE site for property values! The algorithms used do not reflect all the data necessary to produce the figure they post. Kinda like government math :-D
Comparables (previous home sales in the area that conform) are not used in many markets as the MLS in different areas do not report sold properties for many months or not at all. Get a local Realtor who can answer your questions.
0 votes Thank Flag Link Tue Feb 26, 2013
Hello,
This particular market value shown in the information on the property in question is based on the tax assessor's market value which is not an appraisal of the actual market value of the property. In many cases you will see that the TAMV is 30-45% less than an appraised value. The market value definition from FAR is the most probable price that a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus.

The price a property is listed at should represent the value established from a sales comparison approach where the comparable sales with similar properties within 1/2 mile of the property that have sold within the last six months are used as reasonable comparisons.

Thanks for your question. I am happy to offer you my assistance if you are not working with anyone.

Sarah Garrett, Realtor
ALLIANCE REALTY GROUP
"Chosen Best in Client Satisfaction 2006-2012" by Gulfshore Life Magazine
Web Access to MLS:
0 votes Thank Flag Link Mon Feb 11, 2013
Market value is determined by what a buyer actually pays for a property. The seller can ask anything they want but if nobody is willing to pay it then that's not market value.

Chris
0 votes Thank Flag Link Sun Feb 10, 2013
Market Value means whatever the organization publishing the number says it means.
Tax authorities publish a number called 'Market Value."
Aggregate real estate websites publish a number called "Market Value."
Even Bank of America publishes a number called 'Market Value."
Yesterday, 9 Feb, these numbers, on the house is was researching, ranged from $72,000 to $115,000. The house WILL sell for $127,000. It will list at $133,000
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Read the fine print or research each property used in the "Market Value' calculation. That will shed some light on the issue. Now, in the example I use above, there WILL be an appraisal issue. The bank will go for one of the 'dirt ball' numbers as the value. The buyer WILL make up the difference.
If you want real data, based on real comparables, in a relevant data in from the proper time frame, you need to be accessing the local MLS. A Bonita Springs Realtor can provide you free access to the MLS. If you are serious you should give one a ca
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Aggregate real estate websites are for entertainment purposes, Making real estate decision based on the information found on them is like taking relationship advise from the Kardasians.
0 votes Thank Flag Link Sun Feb 10, 2013
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I agree with what Ron Thomas, Agent, Fresno, CA below.

My feelings are, don't judge a good deal from the amount you can get the seller to come down, rather for the value you recieve for the money.

In a market with prices going up, the second that propert sale is recorded on county record the house is now worth the sales price and you've helped the neighborhood appreciate.

The the next seller will use your sale to increase their sales price, etc., etc. etc.

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0 votes Thank Flag Link Sun Feb 10, 2013
Your premise is not necessarily correct:
MARKET VALUE is the best idea of what most Buyers are willing to pay; it is still just an OPINION.
There are small details which will influence some buyers, and not others.
Two similar homes will attract different buyers.
The LISTING PRICE is not necessarily what the Seller will accept, nor what the HAVE TO ACCEPT!

This is not like walking into COST PLUS and buying a Wooden Bowl:
It is very complicated with BIDS and OFFERS, LOANS and APPRAISALS, ASSESSMENTS and TAXES, DESIRABLE AREAS and SLUMS, OLD HOUSES and NEW HOUSES, etc.

Some houses are listed at a very LOW price to attract multiple offers.
Some houses are listed at a HIGH price due to a quirk in the Seller's mind.

These, and other reasons, are what a Realtor can do for you.
0 votes Thank Flag Link Sat Feb 9, 2013
Market value is actually a price that a seller is willing to accept, that a buyer is willing to pay at arm length distance in an open market.This is then used in another sale, being included among other prices, to determine the next market value for that house that is on the market. Overall, this determine sales trend, up or down.

Not all sellers price their property at market value which is based on a CMA Realtor uses. Sometimes a seller believes her property is worth more because of improvements, such as a remodeled kitchen. Other times, a seller might undervalue her property because of the amount of work needed to be done. A buyer who knows the market value of the property will be able to negotiate a better price, here is where a good realtor comes in.

I often throw in, what the bank is willing to give a promissory note on, so the buyer can give his mortgage that is based on the bank appraisal. The difference of the bank loan and agreed price between buyer and seller, (if lower than the agreed price) can kill a deal, or the price can be renegotiated between seller and buyer,but the outcome, if a deal is made, becomes the market value.

Sorry if I confuse you some, bottom line, you still in a great environment for buying houses, with interest so low for so long, cash is tight for some, and the market belongs still to the buyers.

If this was a straight cash deal, then the actual value would be, as first stated, the price the buyer is willing to give, that the seller is willing to accept in the open market. Example. a poor one, howeer, if you buy a car, you I hope, do not buy at the sticker price, you try to negotiate for a lower cost,, perhaps with a price you seen elswere for that car. You be paying, what the dealer wants, and you willing to give, if you wanted the car, therefore market value for that car with that dealer for that specific car.

Again, this is why you need a good realtor to determine if you paying fair value, based on the comparative market analysis (CMA) of homes similar to the house of interest ( subject house)that are deterned by present listed housing, pending deals, and homes most recently sold.

Hope this is understandable: if you have a house you are interested in, send me the address or MLS number via email: realtorronw@yahoo.com or call 239-349-4684, and i be glad to send you a CMA free of charge

Thank for asking the question. I hope you found the above insightful.

Remember: “Pictures without ALL the information are never the total picture and always the entire story ~!”

Ron Wolchesky (Realtor Ron W)
REALTOR®. Short Sales & Foreclosure Resource (SFR)
License in Florida Cell: 239-209-1923 : H: 239-349-4684 Email: RealtoRronW@yahoo.com

http://rwolchesky.wordpress.com/
0 votes Thank Flag Link Sat Feb 9, 2013
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Houses are listed like this for often these 3 reasons:

1. Seller owes more than its worth

2. Seller sees values going up and getting ahead on the market

3. Seller listed with the realor who blew the most sunshine north telling them their house is worth $30,000 more than the same comp that just sold 3 doors down two days ago....because they just tiled their bathroom and laundry room.

HOWEVER, the good ol'appraisal will tell the tale won't it? lol

After reviewing these programs below, please email me at Steve@pro-option.com with the ones you'd like more info about:

1) 100% LTV- VA - pay off debt at closing on a purchases too!

2) 100% LTV- USDA - 12 mo. into Chapter 13 BK…OK Too!

3) 99% LTV- FHA

4) 97% LTV- NEW- No PMI -No FHA 1.75% MIP Fee!

5) 95% LTV- NEW-No PMI!

6) 95% LTV- NEW-CONDO Loan

7) 90% LTV- NEW-No PMI -2nd Home

8) 90% LTV- New-Jumbo w/cc

9) 85% LTV- NEW- No PMI to Super Jumbo

10) 80% LTV- Rental Property

Stated Income Alt Loan programs

11) 80% LTV- to Super Jumbo

12) 80% LTV- FIX n’ FLIP Invest. Prop. – No min. credit!

13) 75% LTV-to Mega Jumbo

14) 75% LTV- Foreign Nationals-to Super Jumbo

15) 75% CLTV-after Short Sale, BK, Foreclosure to Super Jumbo

16) 70% LTV- Hard Money to Jumbo

17) Lot Loans / Land Loans Too!

Go to: http://WWW.PRO-OPTION-COM or call 888-662-4404
===
0 votes Thank Flag Link Sat Feb 9, 2013
You should read this http://www.naplesrealestateguys.com/blog/pitfalls-of-online-… and then use our website and let us guide you.
0 votes Thank Flag Link Sat Feb 9, 2013
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