The value of your home
Your home is your castle and in some instances also your piggy bank. It is natural, therefore, to want reassurance as to the value of your castle. How do you get this reassurance without selling your home? How do you know when you're living in, or have invested in, a 'good' neighbourhood?
Living up to the Joneses
Human nature is also such that people feel that what they have is just that bit better then anyone else's. Your kitsch taps and cute garden gnome are not good reasons for your house being worth more than the neighbours'.
As this is purely a rear-view mirror perspective of prices with a lag of up to 6 months due to the nature of this historical information, a good agent will also take into account current trends. They will know which properties are for sale and at what price and knowing the historical difference between the asking and sold price of the previous properties they are in a good position to determine what these houses will probably be sold at and hence determine the value of your home. Some adjustments are made for special features or lack thereof in your home and this comparative price is remarkably accurate.
The true value
A complex near me recently had a number of homes for sale. One was due to a couple retiring and moving away. What transpired was a very good way of determining the desirability if not the actual value of homes in this area. Another couple, looking to renovate and expand their own house in the complex happened to walk into a showday being held by the original seller and decided to forego the building nightmare and purchased this home. Their home was now for sale and a showday was held. A third couple in the complex wandered into that showday out of curiosity and purchased the second home and their home subsequently went on show. The third home was sold to an outsider. A chain of three homes being sold with two of them being bought by 'insiders' was created.
This was a great endorsement of values in that complex. When people that live there do what they can to stay there and snap up the properties before anyone else can do so, it's an indication of a desirable neighbourhood. This unusual chain of sales was also due in no small part to a excellent and thorough estate agent that correctly helped the owners price, market, sell and buy all these homes. When I want an accurate value, this estate agent will probably have the best knowledge to determine an accurate value for my home.
Article by : Dave Welmans - (www.thepropertygame.co.za)