Does History Matter?
If you're on the buying end of a deal does it matter what a property sold for in the past? Does that determine today's value?
Does History Matter? Blog Transcription
Hey There! Rob Reynar here, checking in. Very interesting discussion around market value and I think it's really relevant to the buying and selling process. Is the historical data on a house relevant to today in what a house should sell for? and my submission is no. I think we have to determine market value by putting a willing seller and a willing buyer together and look at the stats that happen in today's market. What's the market doing right now, what's the average sale to list ratio, properties in the neighborhood, similar property types and not worry about what it sold for, even last year of the year before. Great example, property in the Beltline that in '07 would've sold in the low four hundreds now potentially would sell in the mid three hundreds. Huge swing for the seller, I feel terrible for the seller, they're getting their butts kicked on this but you know what it's what today's market will bear, it has no historical basis whatsoever, the seller can't be down about how much they're loosing and the buyer shouldn't be worried about what the seller is making as far as profit goes. If you flip the coin and say well in '07 it sold for low fours but you know probably years back it as a two-seventy five, doesn't matter how much the seller is making or loosing. You know, the profit or loss of profit is really, it really is irrelevant to the process. So I'd get away from looking at historical stats when you're writing the offer and look at what the neighborhood's doing and look at what you can buy for that money of buy for a little bit more money because rates are so low. So don't worry about what the property did in the past, look at today's market where it's priced in relation to the houses that have sold recently and go from there. Make the best purchase you can inside your budget. New email address for comments, Rob@RobReynar.com, R-E-Y-N-A-R, Rob@RobReynar.com
This is a transcription of the latest Video Blog from MorrisReynar.com . If for any reason there is a discrepancy between this text and the Video Blog, the Blog is deemed accurate.
