Today, figuring out home values where there are high amounts of foreclosure and bank-owned (REO) sales is tricky. The sale comparison approach is by far the most commonly used and is the most accurate. This method is used to find the values of single family homes, condominiums, and small rental (multi-unit up to four) buildings.
Free Web sites such as Zillow also offer property data, but the information is less detailed than the paid sites. For example, the seller’s name may be missing, which could be relevant if the seller was a bank, as in the case of a foreclosure sale. If that’s the case, it can’t be considered a comparable sale because the property was sold in distress. Another key disadvantage of Zillow is that it does not give any indication what condition the property was in at the time of sale. This is a huge factor when determining comparable sales and should not be taken lightly.
The most useful computer database for getting information about comparable properties is the local MLS. This database shows the days on market (DOM) and includes notes whether the property was updated, whether the seller offered concessions on the sale and so on. This data is generally not available through other sources, so asking a real estate appraiser to help you will be crucial, because most MLS systems aren’t accessible to the public.
When determining a home’s value a knowledgeable Hillsborough county property appraiser will look at listings as well as Expired and Withdrawn ones to see which prices did not attract buyers. This helps in determining a “ceiling” or brackets the range of values. Remember, an appraisal is only as good as the appraiser’s market data. The more there is, the more accurate your appraisal will be. Good data always wins, once all of it is analyzed.
Jon Tipton, Florida certified Residential Appraiser
813-391-6121
