Monday, September 21, 2015

The Real Estate Numbers Game



September 21, 2015


As we’re looking for a house, we’re hearing stories of other people who are going through the process. I liked this story:

A house lists for $292,000.

The buyers offer $281,000. (That seemed very low to me, but the sellers took it.)

The insurance agent says, “What a deal, the replacement value of that home would be $305,000!” (Premium is priced accordingly.)

The appraisal comes in at $285,000, much lower than the insurance agent’s figure or the original asking price.

I’m assuming that the tax assessor will have another (higher) figure in mind at tax time.


Do people just throw darts to come up with these figures?



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