Again, let me say how informative this site is. I haven't done any deals yet, but I am certain that I have aquired a wealth of information so as to one day get those deals rolling in, hopefully soon.
Actually, I have a few potential deals in sight. Anyway, here is some info I hope you smart ones out there could process and give me some advise on.
A few months ago, I noticed a "Must Sell, by Owner" sign and after calling the relevant person, I learned that someone else had the property under contract and she might call me back if that deal didn't go through. Well, she called me back a few days ago advising me that the contract didn't go through and subsequently the property is again on the market and that her company has decided to reduce the price from $89,990.00 to $79,999.00. That information caused me to do a little research and the following is what I came up with between Zillow.com and my local assessor web site.
Zestimate $85,500.00 with a value range of $74,385.00 - $98,325.00
- last sold 06/17/2002 for $54,900.00
- local county site: Total Mkt Appra. $51,700.00
improvement value $39,300.00
land market value $12,400.00
- property tax 2007 $575.00
- built in 1975
- 3bdrms, 1ba, vinyl siding, no garage, unpaved
- 1040 sqft, lot size 17,789 sqft
Let me say, the property looks in very good condition and, although I plan to go back with my handy man, it is evident the owners did a very good job keeping up the place. It is nicely painted and the carpet looks in outstanding condition. To make a long story short, I can't find, at this time, anything visibly wrong with the property. However, I think the asking price as relates to the size of the property might be a point I can use for the area; especially with the fact there is only bathroom and there is no available room within the house to include one without substantial rebab and cost. Nonetheless, my delima is after checking zillow.com, most of properties on that street range around the similar price with only one bathroom.
But, I didn't stop there! I checked some other areas within about a three mile radius and compared some similar properties that have actually been sold. I found eight properties with similar features, especially one bedroomers which were sold from March 2008 through July 2008. After doing some calculations, I derived that houses of those particular features with an average square foot of 1098 sold at an average price of $62,027.50. Thus, with the information I gathered, I plan to use the higher number ($98,325.00) from zillow.com price range and discount it by 35% and make an offer of $63,907.00 which would be line of the average prices of those sorts of properties. I.E providing everything is in good shape after my handy man checks everything to be in esquisite condition.
Am I on the right track? Looking forward to your comments.