Posted by JasonTX on January 31, 2001 at 16:07:09:
Just to add on to what Mr. Steed said, have the realtor pull all sales in the neighborhood for the previous 6 months.
Then, check the price per square foot. This will give you a good idea of values for that neighborhood. Keep in mind that houses in better condition will fetch higher price per sqft.
Hope this helps!
Determining the value of a property - Posted by Mark (OK)
Posted by Mark (OK) on January 30, 2001 at 23:02:59:
I am just now starting to get into looking at opportunities in REI. I was scanning the homes going to the Sherrif’s foreclosure sale, and came across some properties that looked interesting.
I found one that was probably going to go for 70K. I went by the house. It looked nice - but is 70K a good deal for this house? I don’t know.
There was a rental available right across the street - similar looking house. I called on it, and it was going for $850/month. So, I’m thinking 70K might be a normal retail price for the forclosure home.
I’m not a realtor, so I don’t have access to the info they have to see what homes are going for in the neighborhood. I’m trying to figure out how to get a good idea of determining the value of a property.
I looked in the land-records office at the courthouse. It seems that the assessed values of the homes in MY neighborhood were pretty accurate.
Is this a good way to roughly determine the value of a house? How do you do this in an area that you aren’t very familiar with? Any great ideas out there???
Thanks and best wishes to all.
Mark
Re: Determining the value of a property - Posted by Charles Steed
Posted by Charles Steed on January 30, 2001 at 23:22:43:
Mark-
Get the particulars on the property as best you can. Number of bedrooms, baths, garage, lot size etc. Call one or more realtors and ask what similar houses in that neighborhood have been selling for. Selling for, not listing for.
Assessed value is not always a good determination of market value. Often the market value is considerably higher than the assessed value. You can also drive the neighborhood looking for similar houses for sale with RE companies, call the broker or agent and ask if the comps (comparable sales) will support the asking price of such and such a property. Determining value isn’t hard but it is VERY important for success in this business. Good luck.