Posted by Fred on January 26, 1999 at 16:39:18:
Yes
cost anaylsis - Posted by atlanta
Posted by atlanta on January 26, 1999 at 14:09:58:
What is the best way to determine the cost I should pay for a single family home or a multi family home. I know you would take into account the asking price, taxes(do I get this from the owner or go to the tax office), insurance ( do I call an agent) and a number of other variables. Help please…
Re: cost anaylsis - Posted by Rob FL
Posted by Rob FL on January 26, 1999 at 18:00:11:
I assume you mean a home’s fair market value. There are 3 ways to determine value. Comparable property approach, replacement cost approach, and income approach. It really depends on the type of property. For SFH and 1-4 family rentals you would probably use the comparable approach. You would need to find what other similar properties nearby have sold for in the recent past and then adjust the sales price for any differences. Ask a real estate agent to do this for you. They call them CMA’s (Comparable Market Analysis). Multi-families over 4 units are a whole different ball game. Their price is based on the annual income they generate divided by a cap rate.