It’s truly advantageous and potentially profitable to pay attention to how much your property was previously sold for. This is one of those times where the present is better understood by looking at the past. Below are a few things to consider about the importance of finding out your home’s prior sale price.
1. A prior sale can guide you into how much you may need to adjust for certain specifics of your property. Such specifics include value adjustment for your home’s location, lot size and overall footprint. A comparison between what previous buyers were willing to spend may give us an insight on how to accurately value your property.
2. That being said, a previous sale can possibly give valuable insight into how the market responded to your home. This will give us cause to dig deep into neighborhood sales to answer many necessary valuation questions.
3. Appraisers can also use your own property as a comparable sale in reports. This is favorable when a property is unique and data is limited. After all, what is more comparable than the subject property itself?
4. Now, if you didn’t know, appraisers are required to examine and report a property’s past 36 months of sales and transfers. So, looking at previous sales can be a normal and even mandatory part of the appraisal process.
5. And finally, if there was a sale in the past, it can be utilized for perspective but ultimately, the current market is what’s more relevant to the process. After all, the market may have changed due to a change in zoning, buyer demand, gentrification, etc. and sometimes sales in the past may simply have sold way more than it was worth or way too little.
It’s also important to note that if there were changes made to the property since the previous sale, don’t hesitate to let your appraiser know about it. Also, opening up discussion about the nature of the prior sale is also a good idea. This is so the appraiser can have more information and maybe make a judgment call about the sale especially if, for some reason, the property sold too high or too low.
We hope this was helpful. For more helpful information, follow us on Facebook by clicking HERE. If you have any questions or if you’d like to have your property appraised, call us today at 702-240-2335.