123 help!!!!!

HI,

I was kinda stuck there also. Click Dean's List, under Student Resources. It's a step by step that helped me.

Tori

I think you are asking how do you know what a house is worth?
1. Call an agent and get a list of sold comps for the last 90 days. NEVER rely on some website for your final comps.
Get a list of comps listed and under contract right now.
Sold comps will tell you what properties are actually selling for.
Currently listed and under contract properties will let you know what is going on in the area right now. How many on market. If there are a lot on the market competition to sell will be tough. If they have been on the market for a long time your resale time could be a long time. These issues effect value.
Remember your comps must be of like properties, same bedrooms, bathrooms, Sq. Ft. Etc. Be careful, comps can vary street to street in some cases. Were the comps sold as is or were they newly remodeled? Were there REOs, short sales, HUD homes in the comps you looked at? How do you think these type of properties effect you FMV estimate?

2.Next, get an accurate repair, remodel, rehab estimate. This is just as important as determining FMV!

3. Determine your exit strategy, assign, fix and flip, lease/purchase etc.

4. Subtract what you are going to need for profit.

5. Subtract commissions, closing costs, etc.

6.FMV determined by comps minus repairs, minus profit needed, minus costs equals your offer. Now you know in advance how you make your money and what you can offer.

Good luck,
Michael Mangham
MD Home Acquisitions LLC

Thanks SOOOOOO MUCH THAT HELPS!!