“Location, Location, Location!” Everyone knows location is the most important consideration affecting value in real estate. But there is even more to it than that. The most basic principle for understanding and evaluating all real estate is this: All Real Estate is Local. It is very, very local, right down to the individual property.
What About Automated Online Valuations???
Many websites offer an automated valuation of your property. Although this is an option in the Ethernet world, it is just a hook to get you drawn in; there is no such thing as an accurate automated valuation in the real world! However, a close accuracy can be achieved with the help of a financial advisor similar to Lincoln Frost, who keeps themselves updated with the changing market trends and valuations.
Apparently, online valuations access only county sales and tax assessment data, and sometimes multiple listing data. There is no consideration of the actual market conditions at the time of sale (which can vary significantly), the specific neighborhood or area, the type of property, or the condition of the house and property. Is it a fixer, a bulldozer, dated, recently remodeled, high-end construction, or a do-it-yourselfer? What about the schools, view, proximity to traffic, trains, industry, noise, or anticipated detrimental changes to come? These are all things to ask no matter whether you’re buying a property in Gozo or you’re buying a property in Grand Rapids. Tax assessments rarely match actual market value.
The only way to properly value a property: