Think I can tell you what your Panama City Beach Condo is worth?
The thing is I’ve often had people ask me if they purchase in a specific neighborhood what the home is likely to be worth within 5 to 10 years. The problem with this question is that there are so many variables involved it’s practically impossible to predict what the housing market will do over the next 5 to 10 years. Variables change all the time as well as the market and while a home may increase in value in one neighborhood it might decrease in value in another. Variables include things like the neighborhoods walk score, how old the homes are, the chance of a renovation or remodel, or even if the general buyers or sellers market shift one way or the other.
The chances of an older home increasing in value that may need some work is greater than a new construction home that will probably not increase in value as fast. If a home is already prepped and complete, it certainly will not gain more value than a home that has had renovations, but again, it depends on the neighborhood as well.
Past performance does not guarantee future results and just because a neighborhood has increased in value in the past doesn’t necessarily mean it will do so in the future. Yes, we use these variables in order to predict as well as we can, but with so many variables in the real estate market it’s very difficult to predict exactly how much a home will increase or even decrease over a given time.
One thing is for certain though, a property is worth exactly what someone will pay for it. Sometimes that’s higher than you assume, sometimes it’s lower. Finding that sweet spot for listing and attracting a buyer is the fine line that most agents walk.