compare with COMPS & also check web sites like ZILLOW.COM, HOMEGAIN.COM, they can also give you an idea of the FMV of a home, i would also get the opinion of an APPRAISER if your REALLY interested in the property, YOUR HERO, SULLY.
The best way is to get comps. from a realtor. In todays market you will want the most recently sold properties. With all the comps. figure what the cost of square foot is with each comp. get an average and use that average number to multiply by the square footage of the property. I will go through an expample for you.
Propety your interested in 3 Bd 2 Ba 1200 SQ feet.
Comp. #1 3 Bd 2 Ba 1150 sq feet sold for 125,000 = 108.7 per square foot.
Comp. #2 3 Bd 2 Ba 1050 sq feet sold for 120,000 = 114.29 per square foot.
Comp. #3 3 Bd 2 Ba 1250 sq feet sold for 132,000 = 105.6 per square foot.
Average of comps is 109.53
1200 * 109.53 = 131,436
That would be your FMV
The more comps. you get the more accuarate your calculations will be.
that usually happens in a perfect senario, what about when the COMPs you have aren't the best COMPs, but you have to deal with it, and instead of having the bedrooms and baths ALL match like your above example, you have like, 3BR,1.5BA,1321 sq.ft., then what? how do you compensate for the half bath not being part of the COMP? in other words, how much would i deduct? SULLY
that usually happens in a perfect senario, what about when the COMPs you have aren't the best COMPs, but you have to deal with it, and instead of having the bedrooms and baths ALL match like your above example, you have like, 3BR,1.5BA,1321 sq.ft., then what? how do you compensate for the half bath not being part of the COMP? in other words, how much would i deduct? SULLY
The square footage is the easiest. Just do the comp on a price per square foot basis.
The bath is harder. Appraisers actually do have specific amounts they deduct. I would say in this case not more than a few thousand.
As a Realtor, I do alot of comps. In todays market there are many REO's on the MLS, which are used to determine value. These have been discounted and may be distressed. Try to get the listing information, so that you can tell the condition of the properties you are comparing. Your value after repairs may be more than the comps show. Be careful.
That' a tough on Sully. Although your example does have 1/2 a bath less than the other ones in the previous example, it does have more square footage that should off set slightly.
If the square footage were the same, I still wouldn't still wouldn't deduct it by that much (maybe a couple thousand dollars). If your comps are done right, they should all still be in the same neighborhood and the seperation in prices shouldn't be that drastic.
Eric example is the best if available. I would rather have the true comps from the MLS and work with what I have, than to take my chances on blowing the whole thing based on 1 item that isn't listed. I have used the little websites that are out there as well the assessed value. Nothing will ever be as good as the MLS comps. If you are having a problem with getting them from an agent, run by a title company, they will print them for you.
As I have purchased properties throughout my career I have worked with comparables that are 1/2 bath off. For example if my property was a 3 bed 2 1/2 bath I would look at comparables with 3 beds and 3 bath or 3 beds and 2 baths. I would rather side on the lesser bath so that I do not get an inflated comparable. The baths, in my opinion, in smaller houses is the easiest to allow for change.
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They can give you the most up-to-date comps on a home/area
Anita
"Just Do It!"
compare with COMPS & also check web sites like ZILLOW.COM, HOMEGAIN.COM, they can also give you an idea of the FMV of a home, i would also get the opinion of an APPRAISER if your REALLY interested in the property, YOUR HERO, SULLY.
YOUR HERO, SULLY
The best way is to get comps. from a realtor. In todays market you will want the most recently sold properties. With all the comps. figure what the cost of square foot is with each comp. get an average and use that average number to multiply by the square footage of the property. I will go through an expample for you.
Propety your interested in 3 Bd 2 Ba 1200 SQ feet.
Comp. #1 3 Bd 2 Ba 1150 sq feet sold for 125,000 = 108.7 per square foot.
Comp. #2 3 Bd 2 Ba 1050 sq feet sold for 120,000 = 114.29 per square foot.
Comp. #3 3 Bd 2 Ba 1250 sq feet sold for 132,000 = 105.6 per square foot.
Average of comps is 109.53
1200 * 109.53 = 131,436
That would be your FMV
The more comps. you get the more accuarate your calculations will be.
That was a great example.
Anita
"Just Do It!"
that usually happens in a perfect senario, what about when the COMPs you have aren't the best COMPs, but you have to deal with it, and instead of having the bedrooms and baths ALL match like your above example, you have like, 3BR,1.5BA,1321 sq.ft., then what? how do you compensate for the half bath not being part of the COMP? in other words, how much would i deduct?
SULLY
YOUR HERO, SULLY
thank you so much for all of your help. I think I am on the right track now.
The square footage is the easiest. Just do the comp on a price per square foot basis.
The bath is harder. Appraisers actually do have specific amounts they deduct. I would say in this case not more than a few thousand.
As a Realtor, I do alot of comps. In todays market there are many REO's on the MLS, which are used to determine value. These have been discounted and may be distressed. Try to get the listing information, so that you can tell the condition of the properties you are comparing. Your value after repairs may be more than the comps show. Be careful.
Al
"NOW GO FIND A DEAL"
That' a tough on Sully. Although your example does have 1/2 a bath less than the other ones in the previous example, it does have more square footage that should off set slightly.
If the square footage were the same, I still wouldn't still wouldn't deduct it by that much (maybe a couple thousand dollars). If your comps are done right, they should all still be in the same neighborhood and the seperation in prices shouldn't be that drastic.
Eric example is the best if available. I would rather have the true comps from the MLS and work with what I have, than to take my chances on blowing the whole thing based on 1 item that isn't listed. I have used the little websites that are out there as well the assessed value. Nothing will ever be as good as the MLS comps. If you are having a problem with getting them from an agent, run by a title company, they will print them for you.
As I have purchased properties throughout my career I have worked with comparables that are 1/2 bath off. For example if my property was a 3 bed 2 1/2 bath I would look at comparables with 3 beds and 3 bath or 3 beds and 2 baths. I would rather side on the lesser bath so that I do not get an inflated comparable. The baths, in my opinion, in smaller houses is the easiest to allow for change.