Posted by rm on August 23, 2003 at 08:44:03:
I like that idea for cases where I don’t have a clear idea of what a property is worth.
What percentage of the time does this approach work out successfully for you?
And, in the cases where you’re a bit high, you probably try to renegotiate your original terms, right?
Thanks.
open only if you can tolerate stupid questions 
- Posted by Danny Teodorescu
Posted by Danny Teodorescu on August 22, 2003 at 21:07:24:
I hear everyone toss around “FMV” I know what it stands for but how is it specifically derrived? Is there an easy way to be sure…i guess one of my biggest fears is confidence in my value estimation…
Market Value Is Stupid?-I Don’t Think So! - Posted by Linda Simms
Posted by Linda Simms on August 25, 2003 at 15:09:16:
Nothing in this world is certain. The objective usually is to determine with as much rationality as possible what the place is worth or will sell for today. That is why it is called “Market” value. The only real indicator of this that I know, is what comparable or like properties in the same area have sold for in the recent past. What is reasonable? A good indicator seems to me to be what have comparable properties sold for in the last six months Realtors can give you these comparables or comps from their MLS listings. The MLS will not, unless you are a relator, surveyor, appraiser ect. give you access. Although not owned by relator/ brokers, it is their little private source. The wisdom of not opening it up to investors on a fee basis escapes me and seems stupid! Do not take listings of properties still for sale. Realtors are a part of the problem of ever rising property prices as they would like to list the property as high as reasonably possible, as it means more money to them, and those listings may or may not be in part or in all truly reflective of the current market.
Other sources are tax roles showing last sales and some places they also show comparable sales. There are also commercial services who will do the same thing. Once you have the so called true comparables, it is up to you to analyze them. You have to compare in size, number of bath and bedroom, lot size and any other amenities. Here you may take into account and adjust for price per square foot. You must also compare as to location, usually a one mile square area, but last and most important of all you have to look at the property and the area. One block can make a difference and it can be readily apparent if you look at it. Shape will also greatly affect it, which you determine by looking.
You may want to average several properties and use the average. In a fast rising (or declining market all of this may not be adequate but it is a place to start. In our “Golden State” where prices seem to fluctuate daily, it is even harder. As we said at the start nothing is certain and even all this may not allay your fears, but it is a rational way to go about it and to be as reasonably certain as possible and not leave everything to chance.
ideas - Posted by Ronald * Starr(in No CA)
Posted by Ronald * Starr(in No CA) on August 23, 2003 at 11:22:59:
Danny Teodorescu--------------
I suggest that you acquaint yourself with the market values of properties in your area. Bill Green recommends in “Think Like a Tycoon” to look at a hundred houses that are for sale. Then follow up to see for what they sold. If you do this, you will have a very good idea of market value.
You can also look up properties on the MLS by looking at realtor.com. This might give you some indication of the market value. However, it is only properties on the market, not those that have sold.
Most assessor’s offices I have been in have information about property sales and prices. Ask them.
Good Investing*Ron Starr
Re: open only if you can - Posted by Stewart
Posted by Stewart on August 22, 2003 at 21:43:59:
Same here I can learn everything else just fine, but unless you have someone telling you the FMV that knows what they are talking about I think it comes to experience, which I have none of
Re: ideas - Posted by Dolf
Posted by Dolf on August 23, 2003 at 13:07:31:
And Bill Green died broke in England while living as an escaped fugitive from the United States!
Hijack the experience of others . . . - Posted by Joe Kaiser
Posted by Joe Kaiser on August 22, 2003 at 21:59:44:
I sometimes travel to other areas of the country and occassionally
invest in the local real estate. Frankly, I have no clue what a house
costs in those areas and I really don’t have the time or inclination
to learn.
Sure, I do a cursory check but certainly don’t have ability to know
with any certainty what’s what.
So . . . we tie things up with a purchase and sale agreement,
making the very best deal we can, and then we market the
property to other investors who do know values. If we’ve
negotiated well and bought “right,” we’ll have people wanting to
buy. But, if we’ve missed it completely, those same investors will
be telling us we’re asking too much.
We either do the deal or we ultimately “pass,” exercising our right
to cancel the original deal with the seller.
Tie it up, market like crazy, and the marketplace will be more than
happy to provide you with the FMV you’re seeking.
Joe
Re: ideas - Posted by Ronald * Starr (in No CA)
Posted by Ronald * Starr (in No CA) on August 24, 2003 at 01:11:50:
Dolf-----------------
Source for this?
And if so, so what? What is your point? A person can have good ideas and can still have his or her own personal problems.
Are you still in adolescent rebellion and so do not want to say something positive about an older, “authority figure?”
Good InvestngRon Starr