List Categories | List All Articles | List Articles By Title
Real Estate Value: Knowing yours is Key to Mortgage Success
The value of the real estate you own, whether it is your personal residence or an investment property, is critical to your mortgage and financial success. If the balance on your mortgage is close to or higher than the value of your property, your real estate is not the financial machine it should be. Therefore, if you want to be successful in real estate ownership of any kind, you absolutely must know how to determine the value of your property.
Now, there may appear to be a simple solution to this problem, you say. Get an appraisal. Sure, this would work, but appraisals are not cheap. For residential property, they begin around $175 and range to $400. For investment real estate, they can be much higher. Imagine owning 25 houses and needing to know the value for each. You certainly wouldn't want to pay for 25 appraisals. So, here is a simple formula for learning the value of your property.
1. Learn the average rate of appreciation in the neighborhood where the real estate is located. Almost any property will increase in value two to three percent each year, even in depressed areas. So, if your rate of appreciation is three percent and you paid $100,000 last year for your house, it is now worth at least $103,000, based solely on appreciation. You can learn this rate by calling a local realtor. Remember, in affluent neighborhoods, appreciation rates may range from four to eight percent.
2. Estimate the value of any improvements, using a ratio formula. That is, if you improve the structure of the property (new roof, deck, automatic garage doors, windows, etc.), all for about 30 to 40 percent of what you paid for the improvement. Now, this is a variable, depending on location, so don't take this as an absolute. So, last year I put all new windows in my house. It cost $10,000. I assume I can add $3,000 to $4,000 in value to my house. Cut that ratio to 15 percent for cosmetic improvements like paint, carpeting and landscaping.
3. Know comparable sales within one mile and within the last year. For example, if a house one block away that is almost identical to yours in dimension and style sold last month for $150,000, this is a great starting ground for your value. Now, remember your home may have things the other house didn't have, increasing your value even more.
4. Other home's asking price plays a small role. Realtors know their business. If you see a comparable home in the neighborhood, being sold by a realtor, check the listing price. Although not nearly as important as the other parts of the formula, this certainly plays a role in determining the value of your property.
So, use this formula, learn the value of your real estate, and you will wield an amazing amount of financial power.
Mark Barnes is an investment real estate and real estate finance expert. Get his free mortgage finance course at http://www.winningthemortgagegame.com. Mark is also the author of the new novel, The League, a shocking, sports-related conspiracy. Learn more about his suspense thriller at http://www.sportsnovels.com.
Kings Bay Georgia Real Estate - An Amusing Tale About a Real Estate Agent
This story is true and not meant to hurt anyone, but the more that I think about what happened, the more it makes me laugh. I hope that you not only get a chuckle from it as I did, but take your time and look for a professional real estate agent.
San Diego Real Estate, Million Dollar Homes
San Diego county has always been known for its Luxury Homes, yet in 2004 San Diego County luxury home sales (homes over $1,000,000) hit an incredible 2774 total units, an increase of almost 170% over total sales in 2003!In the entire State of California, A total of 33,107 homes sold for a million dollars or more last year. That was up 73.
European tax haven Andorra enjoys the same fiscal benefits as better known Monaco, adding to property demand from those looking for residency in a tax shelter as well as traditional ski chalet buyers who flock to the country between December and April each year.With the end of the ski season last month many ski resorts in Europe have closed up shop until early December with overseas property owners having little prospect of rental income in the summer months.
Should You Buy Hud Homes?
Buy HUD homes are sometimes the cheapest option available for a common man to own a house. The fact that teachers and police officers could buy HUD homes at 50% off the market value attracts more potential buyers.
How to Use the Internet to Help Your Apartment or House Hunting
So you are looking for an apartment to rent or a house to purchase. One of the most important steps is researching the neighborhood to decide if you really like to live in that area.
Listing Real Estate Online - Top Tactics for Boosting Sales
Listing real estate online can be a great way to let buyers know what is out there and it gives sellers a chance to show their home to people all over the world. However, the problem lies in the fact that most people still want to tour the home, inside and out, before buying it.
If You Move Yourself
You'll want to take some items in your own car when you move, and that's true whether you're hiring a mover or doing the job on your own. You'll hand-carry jewelry, medications, house plants, pets and a suitcase for each family member.
Real Estate Investing and Home Ownership
If you already own your home, you will probably make money in real estate without ever buying another property.The home you are currently buying with a mortgage is probably one of the most valuable appreciating assets you will ever own.
Selling Houses: Flooring & Feelings
Buyers think they love Italian tile and other hard floor surfaces, but they actually feel happier when they're walking on softer surfaces such as padded carpeting and padded laminate. Even so, you'll want to give some serious thought to the floors in your home if you want to sell quickly, and for the highest profit.
Do You Know What Design/Construct (or Design/Build ) Means? I Think You Should!
These real questions on 'How To' build are answered by a US Master Builder and myself from the development viewpoint, after I received them from readers of my e-book, "Residential Development Made Easy."Question 1.
For Sale in Ridgefield
Ridgefield Connecticut, located near the New York border, is a small, quiet town, and a great place to live. There are many types of homes that are for sale in Ridgefield, including luxury homes.
You Have 15 Seconds to Sell Your Home! 11 Steps You Can Take to Sell Your Home for Top Dollar
Selling your home? Here are some suggestions to help you sell yours for more than your next door neighbor's, and faster! Most buyers will know within 15 SECONDS after crossing the threshold if they want your home. But first, you need to attract them inside!11 steps to take to sell your home for top dollar1.
Death, Taxes, and Foreclosures
So how do you find the best foreclosures. Its not easy as the business is very competitive, especially in this current crazy real estate boom.
The Irish Property Market - Expensive But Worth It?
Lying on the edge of Europe facing out to the Atlantic Ocean sits Ireland, one of Europe's smallest countries and often described as 'The Emerald Isle". A beautiful country characterised by vibrant, colourful cities and towns set amidst endless unspoilt green fields, Ireland is now officially the best place in the world to live.
New or Old House?
A lot of buyers think that a new house is the way to go but it's important to have some knowledge of quality and of the builder. New paint, carpet, doors, windows and cabinets are a quick and easy sell.
Understanding Title Insurance
Title to a property is a record detailing the owners of the property and rights associated with the ownership. Title typically shows a progression of ownership from the first owner to the current one.
The Cat in the Attic
Strange and unexpected things happen during home inspections. Seldom are they tragic.
Transforming Doghouses into Dollhouses
Successful real estate investing depends largely on a correct assessment of a property's profit potential, but it also depends on your ability to transform a doghouse into a dollhouse. The renovation process involves physical work and choosing the best supplies, in order to create maximum positive emotional effect and profits, but if you make wise choices in your choice of colors, textures, and building materials, you'll assure yourself a fast and cost-effective sale.
Oh No! Something has Happened in Florida
The Florida housing market has attracted many foreigners to invest their hard earned money in the sunshine state. The British have for a long time favoured Florida for buying a second home.
Buying Outer Banks (OBX) Investment Property
So, you're thinking of purchasing a rental property at the beach. Historically, real estate investments have proven to be a wise investment strategy.
home | site map
All articles are copyright to their owners.
Note: this website lists articles, We do not Write Articles !