Richmond Real Estate: City Property Value

February 26, 2009

How relevant is the city property value as compared with your current home value?

The city value of a home may be higher or lower than the market value of a home. When the housing market was rising as happened during the past 5 years, the property’s city value was found to be lower than the market value. However, when property values are falling, the market value of a home may be lower than its city value.

City Property Value for 2009 is about the same as 2008
5740-garrison.jpgHome prices dropped 12% to 15% from the peak price level at the end of 2007. This has resulted in average home prices in Richmond now selling at a discount from their city values. A more detailed analysis showed that the average older homes followed the general market trend. As of the end of 1st quarter of 2009, home prices are found to be selling at a range of 4% to 6% below their city values.

Newer homes under 12 years old with living area around 3,000 sq ft priced around $800,000 to $1,000,000 were found to be in good demand and managed to keep the prices above city values. An analysis on 3-bedroom townhomes with 1,300 1,600 sq ft were found to be selling at their city values for 2009.

The selling price of a home is affected by many other factors. A more desirable home in a good neighborhood will likely command a premium value compared with comparable homes. Ultimately, the seller and buyer are the ones who will decide the final transaction price for the home.

If you have questions on buying or selling your home, you are welcome to contact me by phone or email me.

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