OfflineI am contemplating going forward with a short sale I've gotten a verbal approval from lender for $65,000. My issue is that I've been having a hard time giving this house a solid ARV. It's a 3 bed/2.5 bath colonial with 1727 SF, and the recently sold colonials are 4 bed/2.5 bath with an average of 2068.5 SF. The town I invest in is divided into multiple parks, so I try to stick with home sales within the same park as my subject properties. I was told to value this short sale by using a price per SF, which I've done. Others advised me not to focus solely on this technique. Others told me to branch out to other sections of the town - which are over the 1 mile mark - and use recently sold colonials that are 3 bed/2.5 bath, while others have told me to simply stick with the sold colonials in the same park as my subject property. Taking everyone's feedback has of course yielded dramatically different ARVs. My concern is that I don't want to sell myself short by determining an ARV that's controversial since everyone's advice has varied. Should I just order an appraisal and be done with this dilemma?
Is it Time for an Appraisal?
Posted on: Mon, 06/20/2011 - 01:02
have you gotten your comps from a realtor or just searcchig online? A Realtor can have access to sales that may not be on the internet yet...
I would not go forward with a purchase without a reliable appraisal; so if you cannot get a good comp, I wouldn't mind paying the $300-$500 for an apapraisal which could save you thousands...
Wishing you success,
Valerie
Valerie
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the way you have done it is the proper way (however, in this market there really isn't a proper way) that I would have done it but I have a LOT of experience. If the calculations make you nervous, ask for a market appraisal from a real estate agent under the guise of using her/him for a listing. Try to learn your market, but it seems you know what you are doing.
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Thanks a bunch! The input is greatly appreciated. Valuni, I have realtors who supply me with comps. Bill, thank you so much for your encouragement. How would I adjust the value of my subject property since it has central air and the comps don't?
Thank you for your feedback, masseur07.
take the sold prices and divided the sq ft =sq ft price, then take your sq ft and multiply by sq ft price
as long as the lots/land is equal
Mike
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Hey, thanks Mike. I did that method as well. I appreciate your response.