Hello BP Members,
I have a question about analyzing for sale by owner properties.
When it comes to the comps do you only consider properties that are over what the owner is asking? Or do you consider all properties that are similar bed, bath, year, SqFt, and in good condition no matter if the price is lower than what the owner is asking?
I have found a few for sale by owner properties that are asking more than what the area is selling at and are in the need of repair.
Comps are recent sales that are comparable to the subject property What someone is asking for a property has nothing to do with the comps The property is either undervalued,at market price(for that day) or overpriced Most fsbo's do not sell because of incorrect pricing and they will soon be listed on the mls unless the owner is just fishing and has no real need to sell
To add on to what @Steven Picker says
You analyzed all SFH or 4 unit properties (or fewer) the same way - using comps. Whether you find the properties through FSBO, MLS, Wholesalers, other investors, auctions etc. It is the same process of determining the value using comps.
Forget about what the owner is asking. This is often fairy-tale land figures. Approach comps the way a (good) appraiser would, which is comparing SF, location, condition, amenities, age of home, utilization, etc.
Alright that makes more since.
@Chris T. So how would you compare multifamily units (2-4)? Compare them to sold multifamily units with the same number of units with similar SqFt, condition, and age.
plus income ,condition ,etc
Sorry, it took so long to respond. Was moving.
What would you suggest be a good range for comparables for a multifamily property?
Ex. SqFt: +/- 200 Year: +/- 10 Income: ?
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