Appreciation rates are one of the factors that can significantly influence a home’s value. If property in the area is increasing in value, an individual property becomes more desirable and therefore has more value. Outside factors can influence or decrease value, such as the addition of a nearby golf course or new highway access.
Values Can Fluctuate
Contrary to popular belief, real estate property values do not always increase, and if you view your real estate purchase as an investment, it is very important to keep this in mind. Area risks provide insight into the overall value of certain areas, and whether values there may increase or decrease in the future. Obviously, historical values can impact this issue, as well. At the low price of only $6.95, our HomeSmart Report can provide you with a comprehensive and detailed summary of the area risks associated with any residential property.
Areas that show significant appreciation rates typically draw attention from real estate investors. These investors may choose to buy undeveloped land and sell newly constructed homes. Alternatively, investors may purchase undervalued property, hold it for a period of time, and then sell the home at a profit after the area appreciates.
Whether you’re buying or selling a home, for personal use or for profit, you need to know its value. The price alone does not provide you with enough information to make informed decisions or negotiate intelligently. Our HomeSmart Value Report provides an objective, third-party calculation of the value of your home. This valuable resource is available for only $24.95, and you can receive the information within a minute.