Figuring ACCURATE comps (long) - Posted by osirus

Posted by osirus on January 20, 2000 at 08:58:53:

Heated square footage is the base inclosed area of the house that heated and cooled. These include areas like bedroom, kitchen, living food etc. They do not include uninclosed front and back porches, garages etc. An realtor told me to use heated square footage instead of total square footage when determining market value. The online property info webpage for my county is where I find heated square footage info.

Figuring ACCURATE comps (long) - Posted by osirus

Posted by osirus on January 19, 2000 at 21:25:38:

I have read and understand J.P. Vaughan’s article “How to Determine Market Value”. My problem is that I find strict adherence to rule 3; which say comps should be within 5 years of age and 300 sqft of the target house; tends to eliminate most potential comps. Most of the houses I am dealing with are old wood frame houses built between 1900 and 1960. It is typical for the target house to be built in the 1930’ and the comp houses to be built in the 50’s and 60’s or vice versa. This is particularly a problem in areas being revitalized where homes built within the last 6-7 years ago are side by side with homes built 40-70 years ago. Also it is common for the target house to be 700-800 sqft and 2bed/1bath and all the comps are 1300-1500 sqft and 3/1 or 4/2. In addition, there are somtimes hugh price fluctuations between houses in the same neighborhood. These inconsistencies made me fearful that I would make some critical mistake in figuring after repaired value.

Now, by example of an successful investor from my RE investment club, I simply use the average cost per square foot calculated from near by houses that have sold in the past 6 months. Then I multiply this figure by the heated square footage of the target house to get ARV. I disregard the age and square footage of the houses. The reasoning being that a old fixed up house are as desirable as a newer house. Thus far, I feel confident about the comps that I am generating.

Is this nonchalant method a good for figuring comps?

Re: Comps - Posted by Judy

Posted by Judy on January 20, 2000 at 08:35:36:

What is “heated square footage” and how do I get it?

Re: Figuring ACCURATE comps - Posted by JoeB(Atlanta)

Posted by JoeB(Atlanta) on January 19, 2000 at 21:54:42:

Yep, the cost per square foot is a decent method of comp-ing (might just want to use the older home sales though) when you’re faced w/a giant mixed bag of home sales.

We have the same scenario in Atlanta. Always remember that determining value is an art NOT (anywhere close to) a science.

Good Luck!
Joe Brillante