Searching for list of properties selling under market in DFW?

3 Replies

I wanted to know if anyone knows where I can get a list of discounted/undervalued properties. My thinking is if I can get a list of currently listed properties that are selling below county appraisal, then I can flip the property and make more money.  I would really like to get your thoughts on something like this. In the meantime, I may work to try and create something like this for my own benefit. 

County appraisal has nothing to do with the market value. Just because something sells below apprised value does not make it a good deal.

What you need to find is after repair value based on the comparable sales in the neighborhood. If you can buy and repair a house below that value then you can flip it and make money.

@Nick B. is correct.

What you sound like doing is fix n flips. Buying distressed properties and fixing them up then selling them to actual homebuyers. Which would require the ARV not the county appraisals.

Or you are talking about wholesaling properties. Where you get a property under contract. That property has to be under priced so it probably needs work. Then you assign that contract to a cash buyer who is going to fix it up and sell it for profit then. Still Needing an ARV

Either way it goes I would want you to get some more education about either subject or both subjects before you jump into anything. Or maybe we both are just misunderstanding what you are talking about?

@Rick Reyes    Well that is a great question.  #1 I would say don't count on the county appraisal number as your target.  They are notoriously way off.  They can be way way over market value and they can be way under market value and occasionally spot on.   They also only set that value 1x a year, so a lot can happen in a year where market is increasing 10-15%/year, depending on the time of year you buy vs the time the appraisal was done.   What you want to look at is actually sales prices.  That's where your realtor partner comes into play.   Actual sales prices will give you a better idea of the actual values buyers are willing to pay.

So one thing your realtor/partner can do for you is set up searches at specific price points.  Let's say you like McKinney and you like houses under $200K, and you like 3bed/2bath/2car garage houses built before 1980.  You know those typically sell for $150/sqft in your target neighborhoods.  Your realtor partner could set up a search for you to give you listings at $140 or $130/sqft for example and set you up for alerts to give you any property that fits that price point.  There won't be many, but occasionally you can find a deal....then you go look at it and see how much work it needs and see if purchase price,plus the repairs make sense for you to fix and flip.

You can also set up your own searches for distressed sellers....you buy lists like the foreclosure list, or pre-foreclosure list, or post-bankruptcy list or all kinds of other distressed sellers...they you mail and call them asking if they want to sell at your price.

You can also drive for dollars and target the ugly and distressed looking houses...and door knock, call, text and mail to them.  That's how you find the discounts.