You are considering buying a Newport Beach home for sale, and you are considering market value of the home you are interested in. You have looked at recent home sales in the Newport Beach neighborhood you are looking at, and have established what you considered to be fair market value with the guidance of your Newport Beach Realtor.
Upon performing your due diligence, you also want to know what the owner paid for it. Do you think that has any influence on current market value?
The answer is plain and simple – NO.
What the owner paid for the home, and when they purchased it has no bearing whatsoever on the current market value of the home. If it looks like the owner “got a deal” maybe they did, or maybe they did not. You have no way of knowing the terms of the deal when the owner purchased the home, and you have no idea about the condition of the property (with the exception of what is disclosed in the MLS).
Perhaps the home was an REO or short sale, and the seller purchased it and put considerable money into it as a result of deferred maintenance.
My advice is, don’t get caught up in what the seller paid for the home. Instead, look at recent home sales with comparable properties to establish the value of the home.
If you would like a complimentary market analysis of your home, or one you are considering purchasing, please contact me.