Lately, you as well as I have probably found it hard to find a true FMV (fair market value) on properties. As you know we use the FMV to run an offer formula. Some have turned to places on the web to find a FMV but have quickly found out that comparables are the best way to figure the value.
Then why are the current values so hard to get? And when we do why the values are so much lower that we have seen in the last few months?
Recently, the government has started to initiate the incentives for the banks to accept short sales and REO offers. Many, many low offers are starting to flood the market.
You may have five comparables and three of which are short sale offers. This is dropping the FMV on most properties.
When making an offer or determining the value of a property try weeding out the short sale offers. You may also work off the average price per square foot for the city and/or area. Taking this average price per square foot and placing it comparative to your FMV you just pulled.
These methods may help you get a more suitable and correct value for your properties.
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125