When researching the potential value of a home, one important piece of information is the history. This critical component to the analysis is often overlooked as we scramble to locate ideal comparable sold properties.
Just as important as sales surrounding the home is the archive search for a glimpse into the past to what has currently taken place.
When providing an analysis for a buyer this should be a key element to provide to your client prior to an offer. When you are invited for a potential listing opportunity, the history gives us great insight. This especially holds true if the home has expired and you are seeking to be the next representative.
Past history - if the home has sold through MLS then the information regarding the condition and terms will be available. In a disclosure state, the past sales history is public information, here in Texas, a non-disclosure state, this makes this task a lot more challenging. The past sales history will tell us what was paid, you can see if the home has had updates, upgrades, new amenities, & additions since that last time period that may have a positive impact. Has the home been under contract and then back on market? Has that happened several times, then maybe there is an issue with the home.
Days on Market - key to understanding the possible position the seller may be in at this time. If just listed, the seller may not be as negotiable, if the price was just lowered the seller may not be as flexible, for lengthy days on market it tells us one piece of information - we know what the home is not worth. If there has not been a price adjustment and it has been exposed consistently for a lengthy time, then it most likely is overpriced.
Research the Past History and it will unlock key information for a well prepared value analysis.