Quote:
Posted By MelissaP1 on 07/07/2017 6:47 PM
MARKET value does NOT equal "HOME Value". Market value is pretty much saying what been saying the whole time. It's MARKETING your home to be ATTRACTIVE to potential home buyers.
For what reason? If the home being attractive to buyers had nothing to do with it selling for more, then why do it. Think of it like an auction. The more people you have willing to bid on an object, the more it will sell for.
Quote:
Posted By MelissaP1 on 07/07/2017 6:47 PM
Home Values are REAL numbers. They are based on how much homes of similar size/features have sold/foreclosed for in about a 6 month period in a designated area. A 3 bedroom 2 bath house next door sold for $100K then your house has a basic $100K home value. (In the generalist of terms).
Correct! And if that house next door to mine was a beautiful well-kept home, and mine is a dump, cars on jacks, dogs running loose, hot tub in the front yard, piles of scrap and crap everywhere, that well-kept home will sell for less than it's true potential.
REAL numbers come from sale prices. Sale prices come from what the home sells for.
Imagine two neighborhoods, built at the same time, just a few miles apart. Both are site built stick homes that cost about 80K to build on lots that are worth 20K. On one neighborhood, Builder creates the association and also has model homes up front with outstanding landscaping and furnished with the finest decorations and furniture. The other neighborhood also has the model homes, but no CC&R’s or association.
Now, fast forward 10 years. The neighborhood with the HOA is still beautifully kept up with clean yards, trees trimmed, etc.
The other has houses that are in desperate need of repair and/or paint. Broken down cars in the front yard, dead grass, dirt spots and dogs that chase you down the street as you drive by.
Which homes will sell for more? Why?
Which homes will have a higher market value? Why?
Remember, these two neighborhoods started out as equals. That is why HOA’s CAN/WILL have an effect on home values. HOA’s can allow your home to appreciate at the highest rate possible simply by removing many things that make homes less desirable. HOA also prevents trashy homes next door causing your home to sell for less than it could have.