Hi, I'm just a beginner in the real estate field and I just want to know how will people value a home, if say, here is a furnished home:
http://www.macsuites.ca/real-estate/search-for-furnished-homes/264-fifth-avenue/ and it is for sale. How much would you offer the seller? What will be your profit, if you are flipping it?
Much will depend on the type of buyer. If your buyer is going to use it as their personal residence, then much is subjective to their likes and dislikes. Hold investors are going to look at it from the income standpoint - as in what is the correlation of rent to value. Wholesalers are going to look at how much it can be resold for if renovated or purchased at a discount.
The basic tenant of all three, however, is to know what similar properties are selling for in your particular market area. Without this knowledge it is only a shot in the dark.
This is one of the most valuable services that a good REALTOR can provide.... Are you licensed or pursuing your license??
@Simon Campbell Thanks for the response. If you don't mind, in case you are the buyer of this property what will you look for?? I mean, if you are buying it for flipping purpose, what will be the main attributes you will be taking care of??
@Josh Autery I'm persuing
A wholesale or flipper is going to be primarily interested in market price discount. They make a profit off the resale. This means that either the property (1) is being sold substantially below market value or (2) remodeling, rehab or renovation will increase the value of the property higher than the costs of the renovation.
They are also going to look for conformity, as in what is standard in your area or what a typical homeowner is looking for. Overbuilt properties have little interest to wholesalers.
A hold investment buyer is going to look at it from a rental point of view. They will weigh the price versus the rent. Generally they want the monthly rent to be at least 2% of the sale price of the house. Location is also important.
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