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Hi all, just decided to join the site after listening to the first few podcasts, just getting into real estate and i MIGHT have a good house to start with. My uncle just recently died and left his house to my dad who does not want the property and is willing to sell it to my at a "family discount", its a fairly old house and will need a lot of work im sure (70 years old i think) the kitchen is really bad will need a total re do, any suggestions on where to start finding out how much its worth, how much i will need to spend on it. I would like to turn it into a rental, also the lot is a double lot so it is possible to divide the lot and build on the other half?

Including a few pics, any help or suggestions would be great thanks, Paul

Seung Lee · Answer

I like this site for a rough estimate.  http://www.eppraisal.com/

This is assuming that the information in the public databeses are accurate.  It'll give you a ballpark figure.  The website assumes that your house is similar to ones around it.  If it's much worse, take a 50% value cut.  It'll give you a decent ballpark figure to get started.

I second Redfin for markets that they cover.  Their app is the most user friendly that I know of.

Paul Ellis · Answer

Thanks! And how would i go about checking the comps? I'm very new at this as you can tell

Seung Lee · Answer

I personally don't think so.   You'll need an appraiser if you involve a bank for a refi later. But having an appraiser's guess of value won't mean that you can actually sell it at that price or that he is even right.  I would get a few local real estate agents to give you their value judgement and take 20-30% off that as a conservative estimate.  You'll find out for sure when you try to sell it.  Or if you are planning on renting it, who cares what the value is until you go to sell or refi?

Edward Barnes · Answer

@Paul Ellis

"Comps" being comparable properties. Look for homes that sold recently, not for sale homes, near the home you're looking at and are similar in number of bedrooms and bathrooms, condition, and age. That'll give you an idea of the price. Obviously the further away the comparable home is, the greater the time that has elapsed since the sale of the comparable, and other differences in amenities, lot size, age, condition, etc. the less accurate the comparable's price will be to the home you're looking at. And the more comparables you can find the better off you'll be.

Redfin is a good idea as far as comps go and looking for properties in general. It's not available in all areas, but is very effective (more so than Zillow or Trulia) in mine.

James Wise · Answer

Realtors can check the MLS for comps. Which is what I have always done. You can contact a Realtor and have them provide you some comps

Or

I believe I see a lot of other investors talk about using Redfin for this purpose as well.

James Wise · Answer

@Paul Ellis

Welcome to the site.

Check the comps to see what it is worth.

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