I’ve been trying to get someone in my area to tell me what the natural market appreciation is. I have a hungry real eastate agent on my hands but he seems to think it is more of a mythical number and thast appreciation is more based on the rehab of a property. Now everything I have ever heard or read,whether it be Carlton Sheets or Russ Whitney or Peter and David, has mention this.
So does anyone invest in North Carolina, more specifically the upper western area?
NC is a linear market. it generally sees 3% a year.
As a Certified Residential Appraiser I’ve NEVER heard the term “Natural Market Appreciation.”
People buy neighborhoods, and the rate homes in one neighborhood appreciate at MAY have nothing to do with the rate of appreciation of homes in another neighborhood (or depreciates for that matter).
The most probable reason you can find no one to answer your questions is because, it would take a lot of research to answer the question adequately.
-Infowell
i think he meant historic house price appreciation
O.K. people,
this is what I was referring to. It took me a bit more searching, not a lot, but I found it…
If someone had their house appraised 5 years ago and it was worth only 65k then, and it is still in just as good a shape now, how do you know today what the value is through appreciation over time due to the market. I’m not talking about forced appreciation.
This link explains what percent the market has gone up from last year.
This thread also helped me…I should have worded it like this guy…
http://www.reiclub.com/forums/index.php?board=29;action=display;threadid=5301
“If someone had their house appraised 5 years ago and it was worth only 65k then, and it is still in just as good a shape now, how do you know today what the value is through appreciation over time due to the market. I’m not talking about forced appreciation.”
I’d look at active & pending sales, expireds (typically listed too high & didn’t sell…especially in todays market), and most importantly…recent sales.
Look for homes as similar to your property as you can find (preferably without major dissimilarities). The closer in proximity, style/design, age, condition, etc. the better. If you can’t readily find any properties or you’ve an atypical property; you’ll need to expand your search parameters in time and distance to include those homes in nearby competing neighborhoods which offer similar overall property characteristics and amenities.
This is less work, and more accurate than what your proposing in my opinion.
I typically check our properties value quarterly.
-Infowell