Home Buying in 55124>Question Details

Shauna, Both Buyer and Seller in Apple Valley, MN

What is the best way to determine whether the sale price of a home is a good buy?

Asked by Shauna, Apple Valley, MN Tue Aug 24, 2010

I've tried comparing the sale price to the county assessed market value and it seems like the sale price is always much higher....sometimes higher by over a $100,000. How do you know if the house is priced right or whether it is over priced? What are some of the resources realtors use when determining a home's value and how can one find out how much a house eventually sold for?

Help the community by answering this question:

Answers

21
the same way you do when buying a TV. shop around. see what you can get for your money.
0 votes Thank Flag Link Thu Jan 2, 2014
I agree, select a real estate professional to work with and ask him/her to conduct a comparative market analysis.
0 votes Thank Flag Link Thu Jan 2, 2014
County assess prices are usually off the mark because they are using big data algorithms. So for a better value utilize your local real estate agent's expertise and rely on an appraisal. The local MLS should have all the sales data for you to compare with.
0 votes Thank Flag Link Thu Jan 2, 2014
Have a comparative market done on the property. What are the homes doing around the home that is being purchased? This is what Realtors do. We look at what has sold in the area; what didn't sell in the area; and what is active in the area. After displaying this information, the buyer then has a good idea how much they should pay for the property.

Mike Westphalen, Realtor
RE/MAX Advantage Plus
612-978-9786 cell
mikewestphalen@remax.net
http://www.mikewestphalen.com

Realtor since 2002 serving the Twin Cities
0 votes Thank Flag Link Thu Jan 2, 2014
Please remember that the assessed value of a home is for tax purposes only and does not determine the market value of a home. I tell all my clients whether buying or selling that a home is only worth what someone is willing to pay for it.
0 votes Thank Flag Link Wed Dec 4, 2013
Comparative Market Analysis. Appraisal. Insured Value. Assessed Value....the only thing that matters is what the MARKET deems as the value at that time. Value isn't mysterious nor is it complicated. You do however need somebody to help you understand how value is determined. This is what Realtors do! Yes, we do many other things as well but every day we are looking at property deterimining whether or not they are priced high, low, or at market value. There are many variables but if you have a professional who knows how to navigate comparable homes, you'll have no issues with getting market value.

I wrote a blog on this subject. Feel free to check it out :)

Gail Strom, REALTOR
RE/MAX Results
gail.strom@results.net
HomesForSaleByGail.com
0 votes Thank Flag Link Wed Dec 4, 2013
You should have a trusted Real Estate working on your behalf to find comparable homes that have recently sold. The current market is the best way to determine if a home is a good value. Best of luck!
0 votes Thank Flag Link Thu Dec 20, 2012
You can become a savy buyer on ANY property if you know and understand the subject properties current comp inventory and you know the comps that have recently pended and sold. If there is a property is of interst to you before you feel you have a good handle on the current markets inventory, ask your realtor to do a "reverse CMA" of the property for you. A reverse CMA will generate the same data that an agent uses to determine the correct list price of a property when listing a home.
Respectfully,

Kevin Burns
elected a 2012 SUPER REAL ESTATE AGENT by Mpls St Paul Magazine & Twin Cities Business Monthly

RE/MAX Results
15451 Founders Lane
Apple Valley MN 55124
cell (952) 210-5243 fax (952) 223-0828
0 votes Thank Flag Link Fri Aug 10, 2012
Shauna,

I can help you please email me and I will look it up for you.
Tom
0 votes Thank Flag Link Sun Jan 2, 2011
Looking for an good agent to do Comps for me in the Charlotte, NC area? I will pay you to help me with this, ?Thanks
Flag Sat Dec 7, 2013
It is something your agent should do for you when you are interested in a home. The agent can compare it to the history of the property either in MLS or the County Web Site as well as comparing it to recent sales.
0 votes Thank Flag Link Wed Nov 17, 2010
Analyzing/comparing the current inventory of homes, recently sold properties, and market knowledge of going through hundreds of homes, agents will be able to give you a good idea on price/value for any given house. Obviously other variables will include location, size, upgrades, style, condition....which will all be taken into consideration when we do an analysis. Assessed values will not have anything to do with "market value". Find a GOOD agent that you want to work with, and have him/her do an analysis.

Sincerely,

Scott Hutchinson
Edina Realty
scotthutchinson@edinarealty.com
http://www.scotthutchinson.edinarealty.com
C: 612 396-0692
0 votes Thank Flag Link Wed Aug 25, 2010
Do you hgave an agent? A buyer's agent cost you nothing, works for you, protects you, gathers the facts you need, represents you throughout the buying process. Agents use both right and left brain information management, putting you, the property, the quality of daily life ownership witll bring and helps you assess both present and future vakue as asset. Begin there and good luck! As a buyer you have a wonderful opportunity right now.
0 votes Thank Flag Link Wed Aug 25, 2010
Hi Shauna,

Thanks for posting your real estate question to Trulia.
The value of a home is based on supply and demand in the subject market place. There is no magic formula for what a buyer will pay for home or what a seller will sell their home for at any given point in time. Please check out my blog on Homes for Sale in Apple Valley, MN to get an idea of the recent market conditions.
http://www.trulia.com/blog/TimLittle/
If you have a specific home you would like the sold information on, please send me the address and I will
be happy to supply you with the information.
Regards - Tim Little
0 votes Thank Flag Link Tue Aug 24, 2010
It is more art than science. County tax assessment values are often off by 10% + but so are sites like Zillow.

Real estate agents and appraisers spend most of their careers looking at properties both online and in person and get a "feel" for things that makes our job a lot easier. When I take clients out to look at properties for sale I try to give them a "crash course" in the same thing and after 5-10 houses most of my clients have a feel for pricing.

At the end of the day every house is different and it is being able to spot the differences and adjust accordingly that makes all the difference in the world. Today timing is also important - houses were on average worth more prior to the tax credit expiration than they are today because of the extra cash buyers were getting and also because demand has fallen substantially and will put pressure on prices to give up their gains from this year.

County tax records will eventually be updated to reflect the most recent sale but that can take months. The MLS records the sales price of homes that sell through that system and REALTORS can look them up. In addition, many real estate web sites have a "Sold Property Search" which will provide basic sold information on houses sold through the MLS in the last 2 years.
Web Reference: http://www.MNseller.com
0 votes Thank Flag Link Tue Aug 24, 2010
Take a look at similar recent sales and compare.
Web Reference: http://www.golftobeach.com
0 votes Thank Flag Link Tue Aug 24, 2010
Not sure how it's done in MN, but here there's always an appraisal contingency in the contract. No matter what you offer, your lender is going to hire an appraiser to make sure the house it worth what you're paying!
0 votes Thank Flag Link Tue Aug 24, 2010
Hi Shauna,

As a Dakota County specialist I can tell you that on average homes are selling for about 95% of 2010 assessed value right now so actually they are selling slightly below assessed value. That said, as you may have seen, many houses sell above or below the asssessed value and the best determinant of market price is based on other recent sales and then comparing that to the condition of your home. One really big consideration is to use "recent sales" and our team has moved to only comparing prices of homes sold since May 5th since homes sold before that were affected by the tax credit. I'm based in Apple Valley if I can help in any other way.
0 votes Thank Flag Link Tue Aug 24, 2010
Shauna, hire an agent to help you. Realtors can look at the sold data, and other factors to give you a true current value.
0 votes Thank Flag Link Tue Aug 24, 2010
There are several ways to determine value. One of the factors can be the assessed value, but it is usually with trailing data and trailing comparable sales; many times the county hasnt updaed their information until its a bit old or in some cases even out of the immediate area. If you have an experienced and knowledgale Realtor, they can give you a much better view of a homes market value and its demand by a potential buyer.
0 votes Thank Flag Link Tue Aug 24, 2010
Take the county assessed value and throw it out the window. That has aboslutely no bearing on prices. A home county assessed at $100,000 could still be a great buy at $200,000 and vise versa. Realtors use recently sold homes as a comparison to get the valuation of a property. It would be best practice to get a CMA from your Realtor to help you make the correct descision on whether you are getting a good deal.
Web Reference: http://www.lennyfrolov.com
0 votes Thank Flag Link Tue Aug 24, 2010
Keep in mind that assessed value has no bearing on market value--you need to be aware of recently sold similar properties in the immediate area, review the data and make a determination as to a fair price--ask your agent for comps.
0 votes Thank Flag Link Tue Aug 24, 2010
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2015 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer