Can anyone tell me what the appreciation rate of real estate on Long Island has been over the last two years?
I have heard that the rate from 2003 to 2004 is anywhere between 12% to 15%. What was the rate between 2002 and 2003? and the rate between 2001 and 2002?
We are thinking about putting a bid in on a house and on domania.com I found what the sellers paid for it in 2002. According to the price listed on Domania, their asking price is almost 50% more than they paid in 2002!
DjPiLL
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Re: Appreciation rate?
It really doesn't matter what the 'appreciation rate' is. They can ask whatever they want. If somebody is out there that will give them asking... it wouldn't matter if appreciation is 10% or 100%. Bid on what you think is a fair price for the house.
Junebride
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Re: Appreciation rate?
I found the same problem when I was looking - and b/c of that web-site I lost out on some great houses. Just try and see what other houses (similar to what you are looking at) sold for in the area in the past 6 months - The house might be over priced (but if that's what they are going for then most likely it will sell for around the same) Is it for sale by owner or by real estate? Real estare agents come into your home and show you comps - (of what other houses sold for around you) and then they price it around the same) But make sure you do your homework. On Domania see what house sold for on the block.
Niecey
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Re: Appreciation rate?
I agree look at what house in that neighborhood more than what they paid in recent months and compare them to what you would be getting.
I know when I was looking houses on my block went for at least 40-60K less only six months before my house and they are very similar houses. Also, the house across the street from me just sold for over 100K more than what I paid a year ago...same size and number of rooms..maybe slightly better condition but not much....
lesleyw
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Re: Appreciation rate?
Thanks for the advice. This house has been on the market for almost two months and from looking at the comps I already felt it was over-priced before I found out the selling price in 2002. So, we're thinking about bidding less than the asking price. We'll see what happens!
DjPiLL
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Re: Appreciation rate?
If its on the market for that long... its probably overpriced.
swags1016
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Re: Appreciation rate?
Also keep in mind that the appreciation rate may not be the same if they have updated the kitchen, bath etc. Any major work that they have done to the house in the last 2 years could also justify the price. You have to bid what you think the house is worth.
Do you know why they are selling only 2 years after they bought?
lesleyw
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Re: Appreciation rate?
I have no idea why they are selling so quickly. Although I do know there are renters living there now. So maybe there was a job transfer and they had to move, but who knows. The house is a two bedroom (one of the reasons I think it has been sitting on the market for so long), so maybe they found that they out-grew it quicker than they thought they would. As far as I can tell, there have been no updates to the house since they bought it.
Kelly9904
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Re: Appreciation rate?
You cant go by what they bought if for 2 years ago! because its a different market now than it was then. I know a number of people who paid 150K with in the last 5 years and all those homes have either sold or been valued at over 330K.....
We looked at a 2 bedroom in Greenlawn which was in very nice condition in a nice area and it sold for 360K or in that ballpark. We didnt bid it though because I just wasnt crazy about it but I do know that it sold for about 120K more than paid for about 3 years before.
