OfflineIts been two days since I started the 30 days to real estate cash book and several days after the buying summit in Vegas. Doing a few comps for myself and finding agents that deal with investors has been successful. A question I raise is, if you do the comps for houses sold vs. houses for sale does that number indicate anything. For example houses sold came in at 211.40 a sq ft while houses for sale came in at 241.14 a sq ft. does this mean anything?
Additionally I would like to add that two full days of diving into the education and knowledge we received has not felt like work but rather a fun exciting new future. I will continue to post my daily progress
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hello mike absolutely it means something. A person can ask anything they want for a house a million dollars for a house only worth 100 thousand. but what someone is actually willing to pay for a house determines its true value. so you need SOLD comps in a 1/4 mile or so of subject property. not what it is listed for. hope this helps.
walt
Additionally I would like to add that two full days of diving into the education and knowledge we received has not felt like work but rather a fun exciting new future. I will continue to post my daily progress
houses sold indicate where the market is, houses for sale is where the asking is, anyone can ask a certain number, but it doesn't mean that the person will get it...you can always put in an offer based on the sold comps...in fact you should...some houses maybe over priced, unless in perfect condition and the half the time the over priced houses are not, which indicate where the actual value is with the sold comps...I had property that was listed at 299k, it needed some work done to it, but similar comps sold in the $260k-270k range, which is where the actual pre-market value was the after repair value with similar homes sold on the block was $320-340k...No room for profit at all unless you were a buy and holder...Some sellers will try to sell at After repair value because that's what they think their homes are worth not knowing that it has to be fixed up first before you can sell anywhere those ranges...And if they don't know their market, and the reason for comps being in that price range and extent of repairs needed to make it sellable at that price, it will be hard to convince them to come down on the lower end...after a few months of it not being sold, they may be convinced to drop the price down by 20 grand or so...that's when you should poke around with the seller and see where their motivation lies...if they are beginning to become motivated, then you can start negotiating with them to drop the price even further, after you explain the need for repairs and comps as to why they need to come down...You can coerce them into selling by pushing their magic buttons by reminding them how much they want to move, how quickly they want to get out of their, that they don't have to do the repairs to sell the house, that youll take care of all the paperwork, etc, ect...and if that still doesn't fly, wait even a few more months...they may come crawling back to you...build rapport with them and find out everything you can with them, be cordial and mindful that this may be a pressing and trying time for them, so play nice and they'll respect you for helping them see through their situation and helping them meet their needs...