Team, new to OKC investor here. Love to network with anyone in the area!
The two recent comps I have in my neighborhood both went for $80/SF - for a sale price of around 150k.
Most of the neighborhood's homes are between 1500-1700, whereas the property I'm analyzing is 2200. 80/ft x 2200 = 176k. So even using the 80 SF (which is conservative because those homes were not updated), does this price me out of the neighborhood?
I would be careful pulling a dollar-per-sf price from smaller comps and applying them to your house. The additional feet are likely not worth as much per foot as those first 1500 feet. If there are no comps in your size range, you will have to do some guesswork. Expand your search area a little bit, look at some stale comps, try to determine how much of a discount you will need to apply to those extra feet. If you want to be conservative, value the first 1700 feet at $80 and the next 500 at $50. Of course, it may be that your first 1700 feet are worth $90 a foot if you do a nice rehab, so you may average out to $80 or so. Impossible to say without knowing the specific location.
Jon, thanks for your reply! It's a nice older neighborhood in Yukon. I've got a lot of comps within a couple miles (not new construction), that go for $90 SF fully updated. Any other thoughts on that specific area?
There is a couple of things to look at. First look at everything in the subdivision and same section if there are sections that sold in the last 6 months. Try to keep your comps within 200sqft up or down and 5-8 yrs up or down Also, try to keep your comps within a mile if possible. The closer the better. Then if you can take your second highest sold as your ARV. if your second highest sold is not updated and your highest sold is, then split the difference between the two and that would be a good place to start.
The biggest house on the block will not always sell for the most dollar per sqft. Bigger is not always better. I see it all the time the biggest house will sell less per sqft than the smaller houses.
If you like i would be more than happy to help you analyze it. Just message me.
Thank for the input @LEE PEREZ ! It's a weird one because everything in the subdivision that's sold in the last 1.5 years is between 1500-1700.
When I expand out a mile, those comps are high ($105) because this neighborhood is surrounded by new construction.
However, a lot of similar older neighborhoods in Yukon go between $85-$90 fully updated , so I feel like $80 is safe even at my SF.
With the property being so unique you may need an appraisal. A desktop or a soft appraisal should work. Investing a few hundred could save you a few thousand. On top of that then you can learn what the appraiser is looking at in the area and then you will understand that area better.
If you haven't already, touch base with @Tyler Weinrich . He's a BP member and wholesaler in the Yukon area. He might be familiar with the neighborhood and able to point you in the right direction.
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