Posted on 4. July 2010 10:17 by qmiskini

Knowing the historical valuation of an Area is one of the critical research pieces required when deciding how to price an offer to purchase a home as well as understanding the current value of your property when selling a home.  The Atlanta Metro area is divided up into Areas - smaller segments of the region that have a variety of characteristics unique to that part of the larger Metro community. Home prices are tracked by Area. When working with a Realtor, whether as a Buyer or Seller, you want to be sure the Realtor understands and can illustrate the shifts in fair market values.

In part, home and property appraisals are based on these historical values.  An appraisal will take into account the pricing of homes similar in size, style, land size, physical condition and a number of other factors and look back approximately 90 days at the sold prices of these comparison properties.  When producing a CMA (Comparative Market Analysis) of an Area, sub division and street for a property, looking back at the recently sold properties tells us approximately what the property you are wanting to buy or sell should sell for in today's market. Age, condition and a number of other factors play into pricing decisions as well. But knowing the longer term pricing history is a critical element as well.

Knowing, in this tough Buyer's market, how well or poorly homes in an area have held their value following the "crash of October 2008," and how stable pricing has remained over the past 12 to 18 months develops a history for a property that lets you measure where (barring extraordinary and unforeseen calamities) your property will stand over the next several years.  For example, in Area 81 in East Cobb which is bordered by I-575 on the West, Hwy 92 on the North, Sandy Plains Road to the East and 120 to the South, the Average Sale Price of a home in May 2010 was $234,801. Exactly 12 months ago the Average Sale Price was $246,332. At the end of May 2008 the Average Sale Price was $257,246. 

What does that mean to a someone interested in buying or selling a home in that popular area of East Cobb?  It tells us that between the height of the market prior to October 2008 until now, the average decline in property valuations is around 8.7% and the decline in the past 12 months is 4.7%. Just knowing the decline in values tells us a lot about the stability of pricing and Areas. By comparison, in Newton County, Area 151 and towns like Covington, the decline has been far more dramatic - nearly 35% over the past 2 years.  So understanding the history of property values can add an important element in more closely understanding the current values of properties, neighborhoods and communities and judging what the future may hold.