How do i find out about the Property appreciatio

Question

How do I find out how rapid/much is a home appreciating? If analyzing a deal and would like to know. Thanks In advance.

Aaron K. · Answer

You don't it is an educated guess at best. If you could predict this with any certainty you would become very wealthy.

Phil Wells · Answer

@Simon Obas the future can’t be predicted. However, you can observe trends. Look at your local association of realtors figures for home price trends in your area.

Look at the specific neighborhood you plan to buy in and look at recent sales. You should be able to see how much those properties have appreciated from when they were previously sold.

Use your local knowledge too, if there’s a relatively cheap neighborhood that the city are pumping money into in order to rejuvenate the neighborhood then this could be a good bet too.

Good luck!

Evan Polaski · Answer

@Simon Obas unfortunately, as Aaron mentions, there really is no way to for long term buy and holds. Historic data can give you some indication, but only accounts for what happened in the past year.

In 2007, most people were not expecting the 2008 credit crunch and recession, or that it would be 2010 before prices bottomed out and take until 2013 just to get back to 2007 pricing.

The point being, most prudent investors are not counting on appreciation for a buy and hold strategy. They are making sure they have strong, consistent cash flow today, and with modest rent increases over time, will be able to outpace inflation. Or, have a plan to force appreciation through renovations and increased rents, but still banking on cash flow, not appreciation.

Simon Obas · Answer

@Jeff Copeland thank you

Jeff Copeland · Answer

Two ways:

1. Look at past sales in the neighborhood. How much were comparable properties selling for two years ago? One year ago? 6 months ago? You should be able to get a pretty accurate estimate of appreciation by simply looking at sales over time. Though past performance is never a guarantee of future performance.

2. Market statistics. Most local boards of realtors develop and publish statistics for their local market. Here is an example from Pinellas County, Florida: https://pinellasrealtor.org/wp... - Just find the equivalent for the market you are analyzing.

How do i find out about the Property appreciatio

How do i find out about the Property appreciatio

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