What is the best way to ballpark the value of a property? I look at my county’s land records which gives a total value (land+improvements).
I’m trying to decide what some reasonable offers should be and having a difficult time, because some values I see on county records are way lower than what some sellers are asking. Any good books on the subject would be appreciated also!
Find direct comps that sold, and are actively listed! The assessed value just shows how much tax they can get off it, not market value. The market tells you what a house/area is worth, so look up the most recent sales in the past 6 months to get an idea of perceived value.
I use Redfin and start by filtering on properties sold in the last 3 months in the zip code that have at least the same number of beds and baths. I start at the street of the house I am evaluating and spiral out ward. I am looking for at least 3 comps, but 5 is better. If I cannot find 3-5 I will extend the filter to include 6 months of sales before I go further than .5mi
Remember that a comp should have a similar style (don't compare ranches with 2 stories), similar construction (brick vs siding etc), and similar age (+-10 years if possible)
@Jared Huffman ,
Linda D. is correct. If you're looking at single family homes (SFH), the best way is to look at what has sold in/around the property that you are trying to determine the value of (preferably within last 6 months; location dependent). You're also looking for properties that are nearest to your subject property in size (i.e. 3 bed, 2 bath, 1,800 sqft., and amount of land). There are numerous sites out there you can use to help you to figure this out as well: zillow, trulia, redfin, realtor.com etc.
If you're still just in the preliminary phase and just trying to acquire a base of knowledge, this site will give you all the info you need. Also, Anson Young just wrote a book on here that will help you (Finding & Funding Great Deals). And to be completely honest with you, all the books on here are value add reads.
I hope this helps and I hope you find it rewarding as you continue down this path. Good luck, and keep the questions coming.
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