Lakewood Ranch Home Values-Where are they going and why do they differ
First American Title issues a quarterly report, the Real Estate Sentiment Index (RESI), which “measures title agent sentiment on a variety of key market metrics and industry issues”. Their 2015 4th Quarter Edition revealed some interesting information regarding possible challenges with appraisal values as we head into 2016.
“The fourth quarter RESI found that title agents continue to believe that property valuation issues will be the most likely cause of title order cancellation over the coming year.”
This shouldn’t come as a surprise. In a housing market where supply is very low and demand is very high, home values increase rapidly. One major challenge in such a market is the bank appraisal. If prices are jumping, it is difficult for appraisers to find adequate, comparable sales (similar houses in the neighborhood that closed recently) to defend the price when performing the appraisal for the bank.
Another monthly report by Quicken Loans measures the disparity between what a homeowner believes their house is worth as compared to an appraiser’s evaluation. Here is a chart showing that difference for each month through 2015.
Common Differences in Lakewood Ranch
Builder Quality/Materials- You may be in the same community and have a similar size home but who was the builder. Certain builders demand a higher price per square foot due to materials used and quality of labor. Its best when looking for a home in a subdivision to find out who the builder was and do your due diligence. Country Club East is a prime example of this.
View- Do you have a water view? Are there other homes in the sight line of your lanai? These things all play a factor into the value of your home. Take a look at Lakewood Ranch Country Club take notice of the lot angle and view.
Every house on the market has to be sold twice; once to a prospective buyer and then to the bank (through the bank’s appraisal). With escalating prices, the second sale might be even more difficult than the first. That is why we suggest that you use an experienced real estate professional to help set your listing price.