Property Q&A in 95032>Question Details

Sonam Desai, Home Buyer in Mountain View, CA

What would be appraisal value for this property in next two years?

Asked by Sonam Desai, Mountain View, CA Sat Jan 24, 2009

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This question is about this property: http://www.trulia.com/property/1072810034-210-Thomas-Dr-Los-…

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2
Sonam

That's always been a good little neighborhood. Folks tend to grow up there then raise their kids there.

That being said, it's not really Los Gatos. I'd call it Cambrian.

I don't think it's realistic to get in and out of a house in two years. It's not like the stock market where you can sell in 5 minutes for $7.95.

As a rule of thumb, you need 10% appreciation to cover your costs. Which means you need 5% annual appreciation x 2 years.

I don't think that's realistic.

Rebekah
RebekahOwen.com
RealEstateByRebekah.com
SanJoseForeclosureFinder.com
1 vote Thank Flag Link Sun Jan 25, 2009
That's pretty much like asking what the value of a given stock will be in two years. Nobody knows -- and if they did, they'd be gobbling up properties right and left. While you'd expect the economy and the housing market to be better two years from now than right now, nobody knows how long it will take for property values to recover, nor how fast that recovery will be.

My best advice is to look for a property that has all the inherent attributes that contribute to value (excellent location, good schools, functional floorplan, good lot, popular upgrades, etc.). As the market returns, those types of homes are likely to appreciate faster than a home that has various shortcomings or drawbacks.

A home that's overbuilt for the neighborhood generally will appreciate more slowly than those that conform to the rest of the homes in the area. Similarly, a home that's in need of updating won't appreciate as fast as others in the same neighborhood that already are a "10."

Hope that helps.

- Rod Herman
Web Reference: http://homesection.com
1 vote Thank Flag Link Sat Jan 24, 2009
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