Finding a New Home (PCS)

In anticipation of my next PCS I have been doing quite a bit of research on my next location and the housing market. Theoretically, it is now a buyer’s market; however, not all areas of the country are seeing price reductions due to the mortgage crises. My next location just happens to be one with a fairly strong market. I have found several sites that are helpful with finding a home and determining how much a house may be worth.
Information on the amount a property last sold for can be found on the county tax assessors’ web site. Type into your search engine and the name of the city or county you plan on moving and “assessor’s office” or “public real estate records” and you can research the property to include not only the last sales price, but the tax assessment on the property.
Another way to get a ball park estimate of property value is to find information on Comparables. Comparables should be the properties in the approximate area (say within 1 mile) that have sold within the last few months. Don’t look at other houses on the market as comparables – that price may be just what a seller hopes to get which may or may not be based on actual worth. Knowing what comparables sold for can help you to determine what price you should base your offer. This information should be particularly helpful to anyone who is trying to buy or sell a home on their own and needs help to determine fair market value. It is also a great way to check the claims made on real estate web pages. For example I came across an add stating:
“Below market value! $90,000 in upgrades for fifty cents on the dollar.” A bit of research showed that the house had been purchased 2 years ago for over $150,000 less than the current asking price. I found that average appreciation per year in that area had been 7% however, this year the market saw a depreciation of 4%. Considering all this, the asking price of the house should have been around $515,000, not the $570,000 they are asking. Another consideration is that renovations do not necessarily bring a dollar for dollar return. Also, if a renovation is very buyer specific, you can expect no return. Some renovations offer nearly 100 return, others go for as little as 5%. I found the return on investment rates for renovations at www.remodeling.hw.net/2008/costvsvalue/national.aspx. For the area I am looking, properties are generally being sold for 94% of the asking price, with very expensive properties pulling in only 82-88% and less costly properties reaching the higher end of the scale.
Other Helpful sites:
Walkscore.com: This site focuses on urban dwellers who like the conveniences o f walking to everything. This web site lists community’s amenities such as restaurants theaters, schools, parks, retail stores, and supermarkets that are within walking distance to the address in which you are interested. It also integrates Google map view so you can check out the neighborhood. Many of the restaurants, shops, and parks have reviews by locales.
www.trulia.com: This site has good information on market trends and real estate overview. It provides some public records information and links to local real estate sites. The site can also be set up to send price alerts on changes made to the price of specific properties.
Zillow.com: This site has a feature that gives an estimate of the value of a property should be; just type in the address and get an estimate. Click on “comparables” and the site shows you a map and list view of all properties that sold within a one mile radius to include Zillow’s original estimate and the amount the property actually sold for. I found that they were pretty close to their estimates; most of the properties actually sold for a bit less – some for a bit more, but not much more. This gives you a really good starting point for your offer. Some realtors indicate if you can show a rational for a lower offer than the asking price as proof that your offer is reasonable, it puts you in a stronger bargaining position.
Frontdoor.com: This is a website sponsored by HGTV. It runs a bit slow but has some helpful features like community profiles on large cities, links to good earth which gives a street view of properties, and links to the listing agent’s site.

The views expressed in this blog are those of the author and do not reflect the official policy or position of the Department of the Army, Department of Defense, or the U.S. Government.