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How to use comps and estimates?

Posted on: Thu, 01/01/2009 - 23:27
How to use comps and estimates?

Looking at a house in my town. I have an appointment to see it Monday. It's estimated value on CyberHomes.com was $259,974. Bank-owned, asking price is $135,ooo. According to the site, comps for that area are $274,750. It is a 2 family house with 2 one bedroom apartments each floor. And it last sold in 2003 for $254000. Seller has never lived in home, so I don't know if he may be out of state. My question is how much stock do I put into theses estimates and comps? Any help is greatly appreciated.

Stephen

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Posted on: Fri, 01/02/2009 - 04:16 #1
Have you gone to see the

Have you gone to see the property? What is the latest sale? What are the do the other properties have that the one you are looking at doesn't.

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Jason A


Posted on: Fri, 01/02/2009 - 23:04 #2
using comps as basis for establishing market value

there are many ways to establish market value but one of the best ways is using comparables from a realtor or if you have access to the MLS you can do it yourself. Knowing the real market value of the target property is extremly important in arriving at our offer price especially when making offers at discount to market.

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Posted on: Mon, 01/12/2009 - 20:24 #3
BostonDolfan wrote:Looking

BostonDolfan wrote:
Looking at a house in my town. I have an appointment to see it Monday. It's estimated value on CyberHomes.com was $259,974. Bank-owned, asking price is $135,ooo. According to the site, comps for that area are $274,750. It is a 2 family house with 2 one bedroom apartments each floor. And it last sold in 2003 for $254000. Seller has never lived in home, so I don't know if he may be out of state. My question is how much stock do I put into theses estimates and comps? Any help is greatly appreciated.

Stephen

What is your market like right now? You are basically telling us that the market has been flat the last 5+ years. If it were my market, I would know that those comps were wrong.


Posted on: Sun, 01/03/2010 - 03:37 #4
Valuation of a home

Hi Stephen,
If you search for the word 'Valuation' on Real Estate Words it will tell you that Valuation means "The estimated worth, price or the estimation thereof or the act of valuing a property by appraisal." There are many different sites that will give you their OPINION. When you have an appraisel that is what you are getting someones opinion of what THEY think the property is worth. I found the site I like to use to do my quick comps. I have tried a few different ones that were way off. I enjoy real estate so it was fun for me to figure out what works best for where I live. And the coach and WMARK1963 are right on the money with their statements. I hope that this helped in someway to help move ahead! Best of luck to ya!!

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Earl in MI
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Posted on: Sun, 01/03/2010 - 04:57 #5
Just getting started

I've just got done reading profits from real estate right now and I'm in the middle of reading be a real estate millionaire. I'm enjoying all the facts that I'v read. Mr.Earl in MI im also in MI how long have you been doing real estate here. How has it been working out for you. Can you help me out with the website for doing quick comps.

Daun G in MI