Estimated Resale Value for Single Family Houses.

[Oleg Uchitel]

I'd like to start flipping properties. I was wondering if anyone has suggestions how to calculate estimated resale value? I am interested in single family homes. I checked the prices for other homes on the street but they are all over the place.

[John Teachout]

House values are based on comparable sales. If you're seeing a large amount of variation, it's primarily because the properties aren't that similar. Obviously there's the size equation and if you have a 4 bed 2 bath house you want to compare it with other 4 bed houses of similar square footage. Condition is a significant factor in house prices and 2 similar houses may be priced $50,000 apart. If one needs $30,000 worth of work, then that can be adjusted for and used as a comparable. One house may be newly renovated and have granite counters and another has 1980's Formica counters. Again, adjustments can be made to determine market value. Realtors are experienced at extracting information and while anyone could learn it, they already have the experience and tools to do it. Do NOT rely on online sites like  Zillow or Redfin to value a property as they can be anywhere from spot on to wildly out in left field (hi or low)