I have a listing in Vinings now that has an interesting real life example of value, and how the Case-Shiller Index has valued it over the years since they purchased it.
My clients purchased this home in August of 2004 for $677,500 and the home in August of 2011 is currently on the market for $575,000.
It is hard for people trading down, but this client is trading up and realistic about the market.
It can be difficult for most clients to understand this concept of the devaluation of our properties, but this is a saavy client in the financial industry and they completely understand the nature of our real estate market in metro Atlanta. These clients are looking to trade up, so they know they’ll reap the benefits of the depressed pricing on the purchase side.
The tax assessment on this home is still $623,550 and I’m sure many other benchmarks would show a higher value, but we’re ready to sell and priced right.
A Case-Shiller study is a great analysis to do on any purchase to help determine the current fair market value. As a professional REALTOR, I have many data-oriented tools like these at my disposal. Combined with my experience in the market, I use them to help my clients determine the right price to pay (or to list) for a home in this fluctuating real estate market.