From: "johnzemek@hotmail.com" 
Newsgroups: misc.invest.real-estate
Subject: Re: Contracting realtors to rent out my property
Date: 24 May 2006 04:51:08 -0700
   posting-account=kUxnzA0AAABM6VuCI8OboYzshfv6Eb4F

Hello Harsh

USA property is considered to be overvalued in some states such as CA,
FL, NV, AZ but undervalued in others like TX, TN, OK, and IN. This is
because markets are not usually uniform and you will find exceptions in
some places in the states i mentioned.

A correction is predicted in the overvalued markets but other places
have not experienced much or any boom in prices so i would not expect
much of a price drop. I believe boston is a high price area but i have
only had a brief look at property there.

Regardless of any correction now, prices should be higher in ten years
than they are now so you should not be too concerned unless you may be
selling short term. Keep your eyes on the road ahead and don't worry
about the bugs on the windscreen. (that quote from a property seminar)

Buying long term investment property internationally like i do is very
different to buying a personal residence. The difference is i don't
have to live there so my main concerns are price, the strength of the
rent dermand in the area, general condition, and rent return. People
buying a personal residence look at several properties and often become
obsessed with one and end up paying too much for it.

Price and rent return are naturally linked so the rent return will tell
you if the price is ok. USA investors look for around one pct gross
return per month. You could apply that method when looking for your
residence by getting an appraisal on the rent you could expect from the
property but returns may be lower in high price areas.

Professional appraisers look at the recent selling prices of equivalent
properties in the same area. Anyone wanting to buy should look at
several properties and compare prices. You can not get a better guide
than what price people will sell their property. There will be
variations in amenities so you will need to be subjective about that.

In some areas the RE agents may quote prices per square foot and that
can be a guide also. When i was buying property in TX the agent
searched the listings for houses around 2000 sq ft and compared prices.
He printed off ten listings with the best value and we went and did
inspections. I am not aware of any other indicies but i am still
learning too.

I hope this helps you some and i am always happy to assist. 

john