how do i find out the average increase in value of a home year on year?

Asked by Elizabeth Hobbs, Scottsdale, AZ Tue Oct 2, 2007

okay i want to buy a home in phoenix and its overpriced i know wha the paid for it in april 2003. if i new what the average increase in value was percentage wise 2003 thru now. then i can use those numbers to justify my offer. any ideas how to find that info out for phoenix

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Jonathan Dal…, Agent, Glendale, AZ
Tue Oct 2, 2007
If you're up for slight experimentation, you can try out this calculator created by Political Calculations. Assume a 3-5% historic appreciation rate, which probably makes for a decent baseline.…

The full post is on the link below.

Jay's right - don't waste a trip to the assessor's office. That's not going to get you very far here in Maricopa County to be perfectly honest. Using the comps that come up when you press "comps" from the assessor site for any property will give you a remarkable range of utterly useless data.
2 votes
Patti Pereyra, , Chicago, IL
Tue Oct 2, 2007
Hi Elizabeth,

What the owner paid for it has nothing to do with what it is worth today. You don't know for sure that when she bought it, she paid the fair market value price for it then, so automatically adding a percentage increase would be incaccurate (and maybe not to your benefit!).

A better idea is to have a Realtor who knows the area well do a comparative market analysis for you using the property of interest as a basis. And be sure that only RECENT sold comparables are used (I mean, within the last 3 months, even, given the undergoing correction of the market) to help you arrive at the fair price.

Good luck.
1 vote
Mike Linkena…, Agent, Jacksonville, FL
Tue Sep 8, 2009
Zillow is also a decent resource for some of this kind of data.
0 votes
Alan Schorr, Agent, Phoenix, AZ
Fri Nov 9, 2007
The value of a property is subject to many factors. The best indicator of the current value is recent sales, current pendings and active listings of similar properties. Selecting similar properties takes judgement
and experience. Market conditions are very important..currently, much of Phoenix is experiencing an oversupply of properties, reduced demand and your property may be competing against bank owned and foreclosed upon homes...You may want to hire a Real Estate Appraiser - Real Estate Appraisers do this for a living. Appraisers ask to be paid for their opinion but have no interest in how much you sell for or who sells your home. A professional appraisal is unbiased and informed. Your method of valuing the property will not be used by the person that you want to sell to in the future.
0 votes
Lori Allred, Agent, Phoenix, AZ
Wed Oct 17, 2007

This is a really interesting question considering the amount of changes that the Phoenix real estate market has gone through in the last 5 years. In 04 and 05 people were realizing up to 80K equity on a home within a years time. This is extremely unhealthy, as a good average would be a 7% equity gain in a years time on a property. The last two years have shown a marked decrease in property values due to a glut of homes on the market, and competitive pricing. As was stated earlier in this post, your best bet is to have a real estate professional run current comps on the property for you, and take a good hard look at what has sold recently. I hope this information helps.

Lori Allred
0 votes
Richard M. J…, , Sherman Oaks, CA
Tue Oct 16, 2007
0 votes
Lloyd Fox, , Phoenix, Scottsdale, 85254, 85255, 85258, 85259, 85260, 85020, 85018, 85014, 85032
Tue Oct 16, 2007

The value of a home is never a function of what somebody paid for it years ago. Just ask those whose homes were bought for ten's of thousand's of dollars higher than what they are currently worth in today's market. It's about what it's worth today. Compare it to other competing sales and current competition, but really put the emphasis on closed sales and market trends. Don't get hung up on averages and generalizations, and really focus on the specifics of the home you're interested in.
0 votes
Deborah Madey, Agent, Brick, NJ
Fri Oct 12, 2007
Hi Elizabeth,

Even if you calculate based upon a formula that factors original price paid and added for appreciation rates, the seller won't look at pricing that way, and neither will the agents or appraisers.

Agents and appraisers will not use data from 4+ years ago for pricing opinions. There are too many variables and possibilities for home improvements or deferred maintenance over the time period. More relevant to the pricing opinion will be recent comps, condition, current pendings, and competition.

While these factors are valid in real estate markets across the country, only a local Realtor can advise you on pricing opinion. He/she will choose relevant comps and advise you accordingly.
0 votes
Ulises Romo, , Phoenix, AZ
Thu Oct 11, 2007
I agree with Patti, what you need to focus on is the Pending and more importantly the Sales in the area. Homes are priced differently form street to street, subdivision to subdivision. So you might want to work with an agent to see what his comps are for the home.

Here is a link to an article that mentions the Phoenix area and the appreciation its seen in the last 10 years, also it contains the amount of depreciation.…
0 votes
Denise Stuart, Agent, San Jose, CA
Tue Oct 2, 2007
This is one of the many things a Realtor can do for you. If you find a good agent in your area, ask them if they can keep you abreast of the market. Lots of Realtors would jump at the opportunity to put you on an informational mailing list, I know I would :-)
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0 votes
ian cockburn, Agent, New Orleans, LA
Tue Oct 2, 2007
The price of what something is worth is dependent on what the sales are for a comaparable today, not last year, or 5 yrs ago, or 100 yrs ago.

Get a real idea of property values by visiting the assessors office in the area of Phoenix where you are considering, and this will help you see actual numbers to determine whether or not a property is really overpriced.

Base your offer on comparables now, and then quantify why you think the house is worth less...maybe it needs some updating, maybe an awkward layout for your needs...whatever it is, and that way when it comes time to negotiate you are doing it from a rationale versus just that it appears to be overpriced.
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0 votes
Ute Ferdig, Agent, Newcastle, CA
Tue Oct 2, 2007
Hi Elizabeth. The association of REALTORS in your state keeps track of sales and appreciation/depreciation data. The local newspapers usually also gather the data from time to time and publish them. I have to caution you about using average appreciation data to justify your lower than asking price. What an owner paid for a property several years ago has very little bearing on current fair market value as current fair market value will be determined by what has recently sold in the subject area and the condition of the property. If the property is overpriced, a comparative market analysis should show this. I would recommend that your agent prepare a comparative market analysis and send it along with the offer to justify the offering price. That's more compelling than statistical data about historic appreciation and depreciation rates.
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