Re: No deal yet but still trying ( sorry for such a long post) - Posted by Ben (FL)
Posted by Ben (FL) on May 19, 2000 at 08:02:50:
Please, please, please…
Do NOT go on comps the Realtor gives you, alone. There’s a chance, a small one, that they are that rare breed of Realtor that actually cares about people, likes to help people, and gets satisfaction from helping others…VERY RARE.
What’s most likely is, they will find the 3 or 4 comps that make the property they are selling look the best, even if they have to look in the next subdivision.
Here’s what I do. First I go to www.iown.com and get all sales wihtin 0.2 miles of the subject property. If there are none, I go out to 0.3 miles. Then I go to the County Appraisers website and check every other property on the same block on the same street. If a property sold within the last 5 years, or so, I record the address, sale price, date, square footage, and whether it has any extras like pools.
I’ve read in articles in the paper, and stuff by lenders and the Chamber of Commerce that, on average, property appreciation has been about 6% in my area. What I do, then, is conservatively apply a 4 to 5% appreciation to all those houses sale prices that sold wihtin the last 5 years to adjust the price to this year. For example, if the house sold for $50,000 in 1996, then I do the following calculation: $50k x 1.05 x 1.05 x 1.05 x 1.05.
Then, I divide the number I get by the square footage. That gives me a price per sqaure foot. I do that for all the houses I listed and all the ones that showed up with www.iown.com. I take the average of the the “prices per sq. foot”, then multiply that average by the footage of the subject house, and BAM, I have my Fair Market Value.
If one of the values that you are averaging is way out of line with all the others, don’t use it.
So far, I’ve been within a couple thousand dollars, if not right on the money, 8 out of 9 times when compared with a certified appraisal from my bank’s appraiser using this method. The time I was off, I was only off $5k.
Hope this helps. Email me back if it’s not clear.