It’s true that a seller needs to know what he or she still owes on houses in Beverly Hills. That determines whether there’s equity or whether a short sale will be necessary.
Sellers who insist that their homes should sell for a higher price because they paid more will be sadly disappointed. Potential buyers will simply move on to a similar house that’s priced just along his or her budget.
Are you buying or selling houses in Beverly Hills?
On the other side of that question are the buyers who’s looking for houses in Beverly Hills think they should pay less because the seller paid a low amount when he or she purchased the house. They have an idea that only so much profit is acceptable.
They too will be disappointed, because some other buyer will come along and pay fair market value.
How is fair market value determined?
By comparing the houses in Beverly Hills to similar homes in similar neighborhoods have been sold recently.
What is a similar home? One that:
- Is approximately the same size and age
- Has the same number of bedrooms and baths
- Has the same quality of doors and windows, floor coverings, fixtures, counter tops, and cabinets
- Offers the same amenities
- Has been similarly maintained
What’s a similar neighborhood? One which:
- Is within the same school district
- Similar as in location regarding to shopping, medical care, recreation, jobs, airports, power transmission lines, freeways, and anything else that might affect value
- Is similar with regarding to home maintenance – or pride of ownership
What does “recently” mean?
In a rapidly changing market, it can mean within the past month or two. When the market is steadier, it can mean within 6 months, or even a year.