OfflineI have a property that I got from a call I recieved on a bandit sign
I ran comps and there are only 2 within 1/2 mile.
4 within 3/4 of a mile.
If I use just the two within half a mile, the property is worth $141k
If I use all 4 within 3/4 of a mile, the property is worth $164k
Zillow has it at $115k
The realtors I have worked with all use a very wide range of comps, but Matt Larson teaches to use only comps within half a mile, and try to get 6.
What is the most accurate way to determine the value if there are only 2 within that range?
This deal will be great if the house is worth $164k. Worth while if it is worth $141k
But if it is only worth $115k this deal will not work.
I know Zillow is not accurate, but I just want to make sure I have the numbers right before I present it to my investors.
Any help would be greatly appreciated.
Thanks, Ben
Waiting for some great answer here.
Meeting to sign purchase agreement Wednesday.
Thanks, Ben
When getting comps on a property the closer the better, but distance is something you can play with to get more comps. I have seen comps go out to with in a mile of the subject property. Take a look at the neighborhoods the 2 comps that are further away. If it is a vastly different neighborhood I would stick with the first 2. Also ask the real estate agent what they would list this property at if they wanted to sell it in 30 days. This should get you to a very close value of the property. I would rely on these things more than what zillow is saying.
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Thanks eroberts, that makes sense
Thanks, Ben