Want to find out the estimated value on a property I plan to sell
Hello – I will be in possession soon of a property that I plan to sell. Of course, I can see the estimated value on redfin, Zillow… But I think they are not taking into consideration the fact that the two homes on the property really just need to be torn down! is there anyone on here who would be willing to give me their opinion?
Thank you so much!
Lisa
Hello Lisa zillow and redfin estimates can be really off, especially when you are talking about properties in rough shape. What I would do is look at your city's tax assessment website. There you will be able to find both the total tax assessed value and the value of the improvements. Normally these values are a good bit lower than they would actually sell for (like 10-20%) but it will give you an estimate. Then I would subtract the tear down cost to get the actual value someone might be willing to pay. However, probably the best thing you can do is talk to an agent in your area who deals with land sales.
Okay, will do!! Thank you for your help. I really appreciate it!
Lisa
If you "know" the properties need to be torn down, then start getting estimates for demolition now for removal. Start talking to zoning lawyers now about getting the resulting vacant lot rezoned for maximum density (which becomes a proxy for maximum value) -- usually some sort of multi-family structure. Then start talking to real estate agents about a marketing plan when all is said and done for the now-vacant, rezoned, lot.
Then demolish the property and get it rezoned. Your goal is to give others turn-key potential: They can immediately start construction of their dreams, so they won't discount the wait -- there won't be one.
Know your budget and keep copies of everyone's estimates. That way you can help persuade buyers as to the true cost of their plans and coax them to maximize their offers.
Whew! That's a lot, but I will look into that for sure! I know they are building brand new townhomes all around this lot right now!
I cannot thank you enough, John! That is so helpful!
God bless!
Lisa
Hello again John - can I ask you another question please?? After chewing on this for a bit I realize I do not have the funds to pay for the zoning lawyer, zoning, and demolition, so do I just get estimates for these services, and then subtract that dollar amount from my asking price? Is it that simple? And also I am curious if you think my estimates would be accurate, or do people in the biz know people, and they get discounts on these services…
Any more input at all would be greatly appreciated!!
Lisa
Hello- Can anyone help me with the site for tax assessment for a property? When it states 'market land value', that is only the land, correct? What does market improvement value stand for? I also see numbers pending for 2023. Are those normally pretty accurate?
Thank you so much!!
Quote from @Lisa R.:
Hello – I will be in possession soon of a property that I plan to sell. Of course, I can see the estimated value on redfin, Zillow… But I think they are not taking into consideration the fact that the two homes on the property really just need to be torn down! is there anyone on here who would be willing to give me their opinion?
Thank you so much!Lisa
Hey Lisa!
You want to check the zoning of the lot. That's going to give you the best idea of what the land value is.
If you're in Seattle it'll likely be SFR, LR, or RSL zoning. You mentioned they're building townhouses nearby which makes me think that you might be in an LR area.
You can check the Seattle zoning code here.
You can check the newly built comps in the area and use 1/4-1/3 of their value to approximate land value. This is a very general rule of thumb and you should be using comps to help guide your decision.
I hope that helps! Let me know if you've got any other questions!
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Broker Washington (#108050)
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@Lisa R....sounds like the value will be just the land ...there will be a lot of variables that will go into an accurate valuation ...I would recommend getting a value opinion from a local realtor that is familar with the area and with land / lot sales ..this sounds like a possible good opportunity for an investor ...let me know if you would like a referal for a realtor or if you have any other questions as I am in Seattle
@Lisa R. I'm a Seattle Realtor and would be happy to help with your questions- please feel free to contact me if you still need assistance!
~Brie
Okay, thank you Dave for that valuBle info! I have contacted one. Thanks for your help :)
Take care,
Lisa
Okay, thank you Dave for that valuable info! I have contacted one. Thanks for your help :)
Take care,
Lisa
Thank you so much for that useful information! I will definitely contact you again if I have any questions!
Lisa Braaten
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#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
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Hire a realtor, don't list your self. Especially if you don't know what the house is worth
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Hi Lisa - I'm an investor and developer, I'd love to run some numbers on your property with you and give you an offer. Best case scenario I can buy your property, worse case scenario you can see how I evaluate and value properties and take that information to be better informed about what your property may be worth! Just shot you a message :).
