Posted by Stacy (AZ) on February 19, 1999 at 16:21:26:
I think you are speaking of determining FMV, rather than an appraisal, although you could buy an appraisal to find-out the FMV. I don’t have properties appraised…I determine FMV myself.
Anyway, the MLS is the best way to determine FMV. Can you befriend an agent who would run comps for you? Failing this, could you call an appraiser and ask him how he researches properties in your town? Without knowing how the town’s records are kept, I can’t tell you how to research props.
Also, monthly rent equalling 10% of FMV is an extremely good value. I think you may mean 1%. (You would be paying for the property in ten months if it was 10%).
Posted by Marlene Giese on February 19, 1999 at 15:53:09:
I tried to go to the appraisal sites listed by some of you. Thank you for the help. Unfortunately, because our town is so small, it was not listed in this site. I’m still trying to find out how appraisers find what houses in our area have currently sold for.
The lady at the courthouse told me that I need to have the lot number. How do I get that? I know I can use a plat book for rural, but how do I find out lot numbers in town.
I have the money to buy a rental property, and I have looked at some. I know that I could get 10% of the asking price for rent. Is that good enough? Should I buy without having an appraisal done?
As you can tell, I’m really new at this. Any and all help would be appreciated. THIS IS A GREAT SITE!!!
Posted by Ted (IL) on February 21, 1999 at 17:10:43:
The lot number you are seeking is part of the legal address. The legal address is on the owners deed. He/she should have no problem showing you the deed so you can get this information.
I wouldn’t buy without a good idea of what market value is.
Just like Randy, I also live in Illinois. I have developed a data base of property sales in my county from information gleaned from the “green sheets”. This information is particularly good because it contains information from realtors that are and are not members of the local multiple listing service and FSBO sales. The down side is you really have to guess at the condition of the interior of the property you are looking at as a comp.
Another way to determine market value is to contact a real estate broker and ask for a " brokers opinion of value". In my area the brokers charge $30-$50 for this service. This is also a good way to start building a good working relationship with a local broker.
Or, ask the broker if He/she would like to submit the offer for you. I do this all the time with an older broker who is not very busy anymore. I tell him right up front that I am not willing to pay a buyers broker fee and that his pay will come from what ever he and the listing broker can agree on if I make the purchase. Once I have this agreement, I then ask the older broker to pull some comps so that I can make an informed offer. The broker likes this because he can do everything from his desk. It costs me nothing. The fees come from the sellers proceeds when/if I buy.
Posted by Randy -IL- on February 20, 1999 at 09:42:30:
I can understand your frustrations about the county employees. I’m an appraiser. I get so frustrated with some bozos I have to deal with there. Once they figure out that your not going anywhere and you will come back again and again, they suddenly become more helpful. Also, learn their lingo. When you search for a PIN to find a PRC with a green sheet they will understand.
When they say you need to have to the lot number to find anything is bogus. There is ALWAYS more than one way to solve a problem. The plat books you can get at the farm service are almost worthless (unless you are looking at large acreage). At the Assessors office, ask to see their aerials or aerial photos. Every county I have ever been to has them. Just find the picture of the subject property on the photo and you have it made. They have on them the PRC or PIN. Some have the legal description on them. Of course, all the info is coded so you’ll have to figure it out.
What state are you in? In Illinois, when any property is sold, a required form must be filed. This form is called a transfer tax declaration or “green sheet”. And the best news is that it is public record.
All you need to do to find comps is to find out if there is a similar form in your state. Then find out where it is filed. On the form is the sale price, date, and Permanent Index Number (PIN) or Property Record Card number (PRC). This number tells you what card to pull for all the info about a particular property. Follow this and you have comps.
A better way is to buddy up with a Realtor in your town. They have all that info on record at their office. They are kind of a private folk so you may have to give some to get some. I mean, talk like you want to make an offer (you do have to make an offer to buy) Then ask to see their “Comp Book”. This is where the gold lies. You’ll have sale prices and dates, addressess owners, buyers, agents, and more. They won’t let you keep it but you can make notes. Those books cost a small fortune to make and maintain, so be nice about it. Some can run you up to $1000.