OfflineHi, please let me know whether this is a potential deal or not.....
A 5 acre over 9,000 sq ft house has been in and out of the market since February of 2009 ranging in sale price from 2.5 mil (not sure yet if that price was actually true) to the low 900s. The home looks like it's in good condition and in one of the best school district in the state. There's a home next to it for sale for 11 mil.-(not sure if this will play a part in the value of this home). According to the county's tax assessor, this home's FMV is at 1.4 mil. But according to another home value site, it's value is at 1.164 mil. The selling price is a little over 900,000. It sounds to me like a great deal. If so, what kind of profit potential should I be looking at?
I know this is such a big amount to start with; but this is the house that just popped in my head while reading the book. Plus I have been eyeing this property for a couple of months now thinking that this could be a great deal for a buyer, given the information I've gathered.
Hope to hear from someone.
Question about potential deal
Posted on: Tue, 10/19/2010 - 14:04
Question about potential deal
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Thats how you'll know if its at the minimum appealing to buyers
If one house on the block is $11m and the rest are in the $1.1m range, something is wrong and that might not be too good, but if the average is $2m and above, you've got a keeper.
Lock it up and then promote it
Thank you.
This whole thing on determining the value of a home with comps within the 1 mile or 2 radius has been a big question mark for me...I'm still trying to figure it out. For example...let's say this home I had mentioned....between 1-2 mile radius, few homes recently sold for 1.3 and above (closest to comparing sq ft, lot size, rooms, etc..) and others WITHIN A MILE sold for much much less with NO comparable to sq ft, lot, rooms, etc.. Then there are homes for sale within the 1-2 mile radius selling from 1.6 mil and up (being the 1.6 mil is a few houses down on same street). So should I assume that this house could be worth over 1.3 mil (as I have mentioned, the county's FMV is 1.4 mil and other sites are within the 950 to 1.165 range). That's a big difference in price to me. Just a little confuse. Hope I am not confusing you.
Thanks
This whole thing on determining the value of a home with comps within the 1 mile or 2 radius has been a big question mark for me...I'm still trying to figure it out. For example...let's say this home I had mentioned....between 1-2 mile radius, few homes recently sold for 1.3 and above (closest to comparing sq ft, lot size, rooms, etc..) and others WITHIN A MILE sold for much much less with NO comparable to sq ft, lot, rooms, etc.. Then there are homes for sale within the 1-2 mile radius selling from 1.6 mil and up (being the 1.6 mil is a few houses down on same street). So should I assume that this house could be worth over 1.3 mil (as I have mentioned, the county's FMV is 1.4 mil and other sites are within the 950 to 1.165 range). That's a big difference in price to me. Just a little confuse. Hope I am not confusing you.
Thanks
get all the homes that are structurally similar to the house you're interested that sold within the last 12 months that are no more than 2 miles and get the median value of all of them and,.......voila
AMed06,
To find the comps, all you will have to do is call up a few Realtors in that area and give them the address and the basic specs. Then ask them to give you a Comparative Market Analysis (CMA for short) for that house/area. If they ask for a proof of funds, just explain to them you have a list of buyers that are interested in those kind of properties.
The ones that email you back with the CMA right away are the potential Realtors you want to be working with in the future. So write their info down and keep any notes on what you liked about them for the future.
And remember... there are TONS of Realtors out there, so if one isn't willing to do a little free work for a potential client, they aren't worth your time anyway, move on to the next.
The key is to be confident and remember that THEY are working for YOU.
Dominic
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