OfflineHello DG family! I have a quick question, I am lookng at a house that has 4 beds and 2 baths. Now when I try to look up comps I can't find any that are 4 and 2 in the last 90 days or so. My question is when I lok at 3 beds and 2 baths do I need to subtract or add any more money to find the adverage or just stick with what I come up with?
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Use the 3 bedrooms as comps. But since you're not comparing apples to apples, figure out the price per square foot and apply it to your 4 bedroom. Be sure that your house is fully permitted, if not, use caution when simply multiplying average price per square foot.
Also, I would use the 'pending' sales in current month for comps. They represent a more true reflection of today's reality. Many of the solds have probably been languishing over the past 30 to 60 days until the contingencies have been removed. In real estate time, 30 to 60 days can feel like eternity.
P.S. - Everything else is immaterial, irrelevant, and unnecessary.
When you can't find any other properties that are comps, you can find the average price per sf as CaREI suggests, or you can widen the area that you are looking for comps. Sometimes when I have a property that's really hard to comp I use both and compare them to see if they are similar.
Right now I have a property for sale that is a 5 bedroom and almost everything in the neighborhood is a 4-bedroom. So I used a much wider area to find more 5-bedroom custom homes, and also found several Pendings that were the same which helped me solidify my value.
And if that still doesn't work, then you go back further than the 90 days, but only if you really have to.
yea that is good advice really I know that we have a fast and hard rule in san diego that a starter hm or middle of the road home not an upper end or a lower end either we subtract roughly anywhere from 20k-30k
so depending on wheer you are you adjust accordingly. but use the price per sq ft like carei & mbjoseph said ok.
PS make sure you pull up your listing sheet for you subject or redfin or zillow window & then your comps listing sheets & compare them, do they look similar? are they close in age? is sq footage plus or minus 20% of our subjects sq footage etc.
look thru the pics of ea comps, are they similar? or are they diff? diff floorplans etc. yoour subject might sell for less & always be conservative if your arv says 170k for example use 160k to be safe ok.
Tony
Go faster do more! GFDM!
thank you. this is some good info.
I didn't thank about that. thank you.
If there are no solds or good comps in the area this could be an indication of an area you want to avoid. OR it could be a great area that no one ever moves out of. Your job is to determine which of the two cases it is.
Michael
Knowledge is power, but execution trumps knowledge. Tony Robbins
http://www.mdhomeacquisitions.com Seller site
http://www.mdhomeacquisitionsbargainhouses.com Buyer site
http://www.mdhomeacquisitionshousehunter.com Bird Dog Site
http://www.mdlodeals.com Tenant/Buyer site
Go to the Chase Home Value Estimator at the link below if they don't censor it
https://www.chase.com/mortgage/mortgage-resources/home-value-estimator
You can also google "chase home value estimator" and get the link if the admin censors it.
put in the address, in the lower left under the aerial view of the neighborhood, click the box labeled "value tools". It will enable you to change the numbers on the 3 BR properties to see what they would be worth as 4BR properties. You can change the sq ft, BR, BA,etc. This is an automated valuation model so adjust accordingly. Hope that helps.
interesting TRSD
Tony
Go faster do more! GFDM!