Hi, I'd like to 1st start by thanking Dean Graziosi for writing an amazing book. If people only had read your book when you realased it you could have saved a lot of people time money and grief. I especially like the part when talking about national factors influencing local markets...I hope you dont have a cataclysmic event .
So here is my dilemma. Im in a major city looking at some amazing homes with serious cash flow potential after taxes/mortgages. Im getting a lot of homes that are selling under for the comparables and I was wondering how do I assess FMV (Fair market Value) and ARV (After Repair Value), and also on the comparables I am getting from my realtor it shows listing price and little bit further down it says total assessed value. Some times the number is above what the house sold for and sometimes it is extremely below what the house has sold for. The reason I ask is becasue my realtor has indicated that some of the properties are already below FMV in the listing price, but my dilemma is assessing what FMV price is due to national/local factors.
For Instance I am want to put in a offer on this home 8Bedrooms/4.5Bathrooms list price= 749,000 my buyer says that if we end up with 649,000 that we would be at 40% below FMV. THe comparables in the neighborhood are these list price= 1.4million sold pric= 1.5 then on the same page it says total assessed= 1.9 ... The second comparable is this list price= 1.2 million and sold price=1.1 million and total assessed= 700k ....
What is total assessed? how do i figure out FMV,ARV...What should be my ideal target range