true value on a property?

Question

Hello! I wanted to a little advice on how to go about finding the closest estimate value on a multifamily property. (other than getting an appraiser). If that is possible. Thank you!!!!  (sorry if this is a silly question. Im NEW!   :mrgreen:

Jessica Sexton · Answer

Thank you all! :)

Jon Klaus · Answer

The value of an investment property, especially a multi-family, will ultimately be determined by it's net income.  If you can find the gross income and all the expenses, you are on your way to finding the property's true worth--to an investor, anyway.

Scott M. · Answer

Hey Jessica - comps from realtors are a good thing to have but I think they were more valuable 3 years ago.

Doing an appraisal is much more complicated today and frankly most appriasers don't understand it let alone realtors :)

So yes - I think getting info from an appraiser and then talking to them (just don't accept the value - ask them about it - why this comp etc....).

Jessica Sexton · Answer

Thank you so much! The reason I asked was because I found a 3 unit property that is listed at 104,000. The estimated value I found on it was between 240,000 - 250,000. It was last sold for 296,000. So I was curious to see if what I was looking at was the true estimated value. I got the comps from my agent and it was closer to 232,000. I think I will take your advice and spend the $25, though! Thank you.

Scott M. · Answer

If you REALLY want to know then hire an appraiser.  Most will do a "value check" for around $25 - best $25 you will ever spend.

You can ask a realtor to pull comps as well - but they are not appraisers - so if you really want to know - ask the right person.