How do I learn the market?

Question

How can I learn my market without access to real estate agents' CMAs?

Recent sales prices aren't listed with the tax office.  I need to be able to estimate ARV, but without cmas or the ability to look up sales prices with the tax office this seems impossible.

I would get an agent, but I'm not ready to actually buy anything.  I'm 23 and in school full time over the summer and again in the fall with almost no break.  I should be ready to purchase next summer.  I just need to be able to learn the areas around town in the mean time.

Any suggestions?  The more specific the better.  Should I stick to one area or neighborhood at a time until I learn that one (or at least learn the listing prices)?

I need help...

I don't like the online appraisal sites like zillow and the rest.  I don't feel comfortable with their results.  Do any of you routinely use one of those sites with success??  For my area the recent sales VS zillow estimates are way off.

All advice appreciated.

N/A N/A · Answer

The club is there to help you. Finding a mentor would help you greatly. If you don't find one, then the advice that Landchaser gave you about building a relationship with a realtor may be the way to go.

There are other sites besides Zillow for finding home values. I have heard that Zillow is not a good site. Here are some that might help you:

Realquest.com

Realhousevalue.com

Appraisal.com

Biggerpockets.com/house-value-comps.html

http://realestate.yahoo.com/re/homevalues/

housevalues.com

netronline.com

I hope that one of these will help you along. Stay with the club. Learn all you can. Good luck.

Lynn Z · Answer

county appraisal office is a great place to check real estate by street, owner, neighborhood.  They limit you to one half hour in our office as they only have 3 computers and there is no help...working your way through the computer software.  Also, they are online but are also limited to street search only (no owner name) and make you reboot after 24 hits regardless.  Appraisers hang out in the appraiser's office and  they are alot more fun there than out there working--a wealth of knowledge and they do keep up with everything that sells or is selling. Check the transfers in the Sunday paper if provided (by zip code in our state) and ride by to see who's buying what and at what price.  That information is about 30-45 days old but good nonetheless.

keep plowing away.  the more information sources you have the better you can protect yourself when you do leap.  I talked to an investor last week that buys 2/1's, 800-900 sq. ft. and insists on 2 year leases.  Looking to buy in the 60's.  Less appreciation rate due to the small sq. ft. but a good place for someone to have a niche.

N/A N/A · Answer

Many great comments here.

I would take the suggestion to meet/befriend a Realtor.  Many should be willing to help as long as you remember that their time is valuable to them.  Try not to become a drain on their time and energy.  Also, you may find that at your age you will have a hard time getting taken seriously.  Just speak and dress professionally when dealing with the agents you meet.

Also, you may try to meet a Title Company Rep.  They usually have web access to public records and they may give you access.  One more place to look is the County Property Appraiser website.  One of the properties I have in Florida, has all the sales online in a searchable database.

I too have found Zillow to be wildly off.  I recently typed one of my property addresses into Zillow, only to have my home compared to homes a few miles away in a differant town, with perfectly good comps on the next street.

Woods
www.LoansInaAnyState.com

Lynn Z · Answer

Long term investors (30 years) target a neighborhood that they think they know will appreciate.  Then, they ride the neighborhood every week, call/quiz realtors, go to open houses, until they find a good buy.  Then they buy low, rehab well,  and sell high.  They take their time but it takes them time and it's a lot of money tied up.

They have a termite guy crawl the house before they offer.  Also, their heat and air guy gives them an opinion.  Line up a banker that will do quick study of the house and approve verbally  a 5 year balloon  then offer cash on the contract -- get the long term investment mortgage later.

Realtors know who the "investor" realtors are.  The ones buying and rehabbing houses successfully..  Some of them have good subs they've used in the past and  those of the broker's lists at the office.  Some are willing to share if you have  a relationship with them.   Most realtors don't invest so its a waste of time with 90% of them unless you call on a listing.  Good Luck.

N/A N/A · Answer

i have found that Zillow is good...if you know how to use it.

Never rely on Zillow for the actuall value of the house you are looking for. It shows you the average of a wide estimated range that is a gap of about 70 to 100 thousand dollar difference. Not much for accuracy.

...however...

Zillow will show you comparable homes based on recent sales listsings. That is where the value of this site comes in. Including the ability to check the rest of the block if you want for values nearby, and checking if they were sold recently.

i find that i use it a lot.

Derek Guyer · Answer

As a Realtor/Birddog, I constantly find that Zillow is not accurate in my market. The accessed value is not the market value and that is a very important difference.

Before I became a Realtor, I buddied up with them (Realtors) and got the info I needed. If there is a listing agent in the area, you can call and ask them what other houses like their listing have sold for in the area on a similar property and see what they send you on the house they are selling. Don't ask for market comps or anything that sounds too "investory."

Some agents will do it and some won't, but it's a good way to find out the info you need and it only takes the agent 5 minutes to do it.

Most importantly, as long as you make it worth an agents time, they should be willing to help you out when you need quick things. To make sure, take them out to lunch or send them a listing or a buyer or something like that and they will want to help you as a result. I've even sent out gift cards to say thanks!

I hope that helps!

Ryan Ebersole · Answer

I feel exactly the same way, and I am in the exact same position that you are.  I am interested in what anyone has to say as well.

N/A N/A · Answer

Have you joined a REI club? They are a good way to learn your market. Network with other investors, realtors, lenders, etc. Build relationships with people and learn from them. These contacts will help you build a team for the future.

Lee Pedrazas · Answer

I have joined a local REI club, but I don't understand how this will help me to learn the market.  The first REI meeting that I went to was great in that I got a lot of contacts for brokers, hml, inspectors, etc, but I still have no idea if the foreclosedl or handyman special homes I find in the mls are below market value.

There seems to be a wealth of information online, but not a lot of info for true beginners.  For instance, I know that I will need to use a hard money lender and that I will have to find a deal that I can purchase and rehab for 70% ARV.  I know that I need to be able to acurately estimate repairs, closing costs, ARV (very important), time, loan costs, etc.  I understand that this is a numbers game above all else.

I can know all of these things, but I still have no way to estimate ARV.  I have no idea what houses are selling for in any given area now so I can't even determine current market value.  In terms of repairs I'm also relatively clueless.  I would have to call a contractor to come out and give me an estimate on any particular property taht I was even considering purchashing.  I would also have to get an appraisal ahead of time to make sure that I thought I could get the property at a good price.  And since I would jsut be guessing, I may have to pay for an appraisal on several properies before I found a candidate.  Then, if I decide to go with the property I could make an offer contingent on an inspection and financing, and my lender will probably require another appraisal by one of their guys so I would end up paying for two appraisals.  Do you see what I'm getting at?

I' perfectly willing to put in the time to get things done and learn what I need to learn, but I need someone to point me in the right direction.

All advice and help appreciated.