How Do I Determine The FMV?
Hi,
I'm trying to purchase a foreclosed or just a fixer-upper property, to fix up and resell. But, I've become quite overwhelmed by the number of properties I'm finding that *could* make money but I'm not sure.
My question is, does anyone know of a good site to go to to view recent sales information in the area along with a value estimation, without having to pay per inquiry or have a limit on the inquiries? And then, on top of that, how do I really determine the market value - after the fixing?
Thanks.
If you don't yet have experience in gathering data and formulating an opinion of value... an opinion of value that you can defend under scrutiny...you'll have to pay for that experience.
Could be as little as a cup of coffee... a lunch, or a professional appraiser's fee.
Sooner or later if you want to participate in this business, you'll have to learn the tricks of the trades.
I go to a real estate agent's office and ask them what housing have been selling for in that neiborhood, I tell them I am considering buying the property, fixing it up , and selling it, The see two deals and get me all info I need. But to find out costs and repairs, I get a boro building inspector and appraiser for the real figures(but they cost)
lori
[addsig]
In most populated areas, especially tract homes in subdivisions, determining market value is easy. Each builder has a handfull of models.
The best way is to look at a lot of homes (recent sales) in the area. Attempt to the extent possible to compare "apples with apples". The more similar the homes the more comparable they are. The fine adjustments for things like fireplace or lack thereof will be subjective but your accuracy will improve with practice.
Make friends with a Realtor for recent comparable sales. Remember that the Realtor has to eat so throw her a listing, sale, or referral.
If you come accross a property which seems to give you problems coming to some sort of a value conclusion, it's time to call in an appraiser----only after you have the deal on paper.
Find out what properties in the same neighborhood sold for and compare house size, lot size, condition etc.
This information can be found online or at the property appraisers office.
I find that most of the on-line comp sources are strictly based on tax info, that is lot size and purchase price. No particulars re: the structure. If the house is in a area of similar homes the tax info is pretty useful, if there may be differences (specially SF vs MF) then you need real comp info from realtors or your own sluething. Good Luck!
The best way?
Probably, Your local Tax Appraisals Office and see what houses that have sold and for how much in the neighborhood your interested in.
Be sure and compare apples to apples, try not to look further away than a few blocks if possible for more accurate comps. Some tax offices show recent sales as far back as 3 years, so you can even see trends such as appreciation, etc.
Some luckier places have this information online.
G'luck
G