Best way to determine the value of a property

3 Replies

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! 

@Jared Huffman ,

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, 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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