market value vs effective market value

[Arthur D.]

just wondering what is the difference? In simple terms.

To which one should I apply 70% rule?

Thanks, Arthur

[Bryan L.]

Yes, use the true market value, not something that's related to "assessed value". And I take it a step further. I try to look at a market value at which the property will sell fairly fast. For example, if my comps show a range of 130 - 140, I will use 130 in the formula (or maybe even 125). Another thing to consider is price points. A house with comps at 105 - 110 should be listed at 99,900 to sell fast. A 105 or 110 list price sucks for any listing whether it be an investment property or not. Finally, I also consider seller concessions. In my area it is common that the seller would pay about $4000 of the buyer's closing costs.