It all depends! - Posted by Mark-NC
Posted by Mark-NC on October 29, 2000 at 19:18:54:
Maybe it’s not the same in all area’s. For instance when I check Realtor listings in this area and I find out they are all priced in say the 60 to 65 dollar a sg ft range I know there is a reason for that.
The Realtors check comps before they list a home. At least they do in our area. The Realtors usually don’t list a real high sales price unless the seller wants them to. If they do it’s pretty obvious and it is out of the norm on the price per sg ft range.
I also know in my market through information from Realtors and with my own experiance of making offers that most homes are sold at full price or within 5% of the asking price. I use this information to determine where I need to be on the deal that I am looking at. I also know that when I go to resale my property I will be safe in that range when I sell it.
This system has never lead me wrong and many times I have been able to sell for the same price range per sg ft that the Realtors were listing for unless I wanted to move it real fast, then I would sell it for less.
Like I said this may not work in all areas. Some areas are very volatile and there seems to be no rhyme or reason for pricing. If this was the case I would be spending time at the court house. But working with the MLS in my area has not failed me yet. Also it is much faster for me than going down to the court house.
I guess it all depends on your market and your ability to find out the same type of information I use to determine these values.
I think your method of going to the court house is probably a good safe way for a beginner. But for me It would be way to slow. The only time I would do this is if there was nothing listed in the area.
I also beleive that an investor should be able to determine that the property they are looking at is a deal after a few phone calls. If they can’t they are spending way to much time on it or they are going to offer to much and make it a risky deal.