How accurate are the Comps?

I have a question for you. Why are you paying for comps if you have a great realtor? Just wondering... LOL!

Lena

I've got comps to go by right now, which is why I figured I knew what it was worth. But I'm wondering if it takes into consideration the commercial value of the property. I was kind of running a test. What do you think?
The PMI course teaches us, too, how to figure value with comps, but it's really weird in our town. There's such variety of areas, and really not much selling in the parts I'm looking at. Honestly, even the comps Gail gives me I don't put too much stock in. There are always variables that aren't considered.
Maybe I'm just a Real Estate Rebel. Give me a good, swift kick, Lena.

Rina

It wouldn't do any good anyway... LOL! I think you should cruise the areas in question and pull flyers off the ones posted with realtors to get an accurate idea of what the comps are. That's what I do, what better way to find out what the competition is, than by getting them first hand? The website might be a generalization like Zillow is, ever thought of that you lil rei rebel?

You have to go by what's been "SOLD". That's the only way to be accurate. See, that's the problem. Nothing is selling except what I'm buying. (well, there are others, but all LOWWWWW!!) Even the comps that came up in the electronicappraiser site were from 8/29/06, 9/14/07, and 1/18/08. That's not right. So what do you do?

Rina

P.S. Thank you for helping, Lena. I appreciate you.

You have to go by what's been "SOLD". That's the only way to be accurate. See, that's the problem. Nothing is selling except what I'm buying. (well, there are others, but all LOWWWWW!!) Even the comps that came up in the electronicappraiser site were from 8/29/06, 9/14/07, and 1/18/08. That's not right. So what do you do?

You should not have to spend $29 to get comps. The answer is in your hands. If the (homes in that particular area) are all low, then ask for a lower price. You want to buy low and sell higher or rent since you're the queen of landlord, lol. SO, if the market in your area is low, then you have the low comps to support your asking price.

If you could have your agent get you a low comps in that particular area, use that to your advantage. Good luck and happy investing!

LL

I hear ya, but the area this house is in is zoned different than anywhere I've bought and it's DEFINITELY worth what he's asking. Actually the land itself is worth almost that much. (hope he's not looking in here.lol) I'll still offer $45K.

Now that I don't think the appraiser site helped me out, I won't use it anymore for now. When things start selling, there will be more to work with. For now, I'll use it to my advantage.

And, Lloyd, OF COURSE it's a rental. LOL

Rina

If I can not get enough recent comps to figure value, I use older comps and adjust for appreciation or depreiation acording to what has happened in that time period (you can get that info from your agent). I have used this method before when I disagreed with an appraisal, and the lender agreed to use it. If you are getting the listing information on the comps used to calculate the value, they sould show how the property is zoned. if not use the tax ID number to find out.

Al

That makes sense. I'll try it. (edit... ) Thank you, Al.

Rina

P.S. Sorry for bombarding you with questions.

how did you make out? Think i'm going to go ahead and agree with Al on this one, cause that may be your best bet, and possibly a safer one, i actually do what Al does(when i have to) depending on the situation, i know for my area, and this happened reciently, i had the SAME problem with the only thing i had to compare with was "out dated" COMPS, so i adjusted them accordingly, if the COMP said 4/17/07 $145,000 i would deduct approx 10k-15k, because that seemed to be the difference in price over that time span.

I will stop with the questions(for now. )
I appreciate all the input. You guys are the best!

Rina

WITHOUT BRETT FARVE? you guys are in trouble this year, lol, you know i just had to say it,

You little thread-jacker, you. Just HAD to rub it in, huh? LOL
Keep it up and you won't be my hero for long. haha

Rina

gotta love Rina, shes something special huh? lol

rina
i also use electronic appraiser which i think is a good site but i also don't have a good realtor yet to get comps from.so i have nothing to tell me if they are accurate or not. but as to all the questions, you never know until you ask and that is how we learn.
dee

Rina,

I just ran across this discussion, so it may be too late to make any difference. With this sort of appraisal system, you can bet that it is based on a normal residential property with no consideration for the zoning. But if the house is livable, and the lot isn't huge, the total value ought to be in the ball park for the time period of comps that are in the system. Normally, if the land is more valuable because of higher zoning, any added land value would probably be offset by a like reduction in building value until the building adds no value.

Your situation may be based on pre-crash sales levels. Does the product identify any sales or just give you the "answer?"

An offering price of $45,000 sounds like a good place to start. How did it end up?

cactusbob

(sheepishly I say) I never made the offer yet. It's still for sale. The gentleman is older, having health problems, wants to get rid of it. BUT he's had it sitting empty for a year or 2 now. He's kept it in good shape (take my opinion with a grain of salt. lol), and has it winterized. It was rented out before that. Decent size 1-2Bdrm/1.5 bath older house w/ basement. one OLD garage, and one 2-stall garage that needs some work. 100'x140'lot. Is part of an older neighborhood near the lake that is now converting to commercial. He owes a "little bit" against it to the nursing home where his mother was (the property belonged to her). I guess I should be giving him another call.

Advice? Input?

Rina

P.S. I'm not sure what this meant...
"Your situation may be based on pre-crash sales levels. Does the product identify any sales or just give you the "answer?" "