Sold comps question

I also like the website www.trulia.com or you can get some comps on www.realtor.com. Also find any Realtor in the area and ask them to run comps for you. Tell the Realtor you want to get an idea for the prices ofthe type of home you want the comps for. Good luck. Believe and Achieve! - Joe

if you have a smartphone, download the homesnap app; you can take a picture of the property or enter the address, and it will give you a low, high, and estimated value.

Just tried downloading the homesnap app and it says "Update required...This app requires iOS 5.0". I have an older iPhone so maybe it just works with the newer iPhones? Not sure.

Thanks anyway.

Indiana-Joe wrote:

I also like the website www.trulia.com or you can get some comps on www.realtor.com. Also find any Realtor in the area and ask them to run comps for you. Tell the Realtor you want to get an idea for the prices ofthe type of home you want the comps for. Good luck. Believe and Achieve! - Joe

Thanks Joe. I tried trulia and realtor.com and neither of them worked either. Could you expound a little bit on what to say to the realtor when I call him/her? I have a realtor and I've asked her to run comps before and she's basically incompetent because she gives me comps that are several years old, etc. So I need to call another realtor and need to know exactly what to say. Thanks for your help!

I think your best bet is going to be a realtor that is knowledgeable in the local market that your subject property is located in. Usually when there are no comps there is not much activity in the area. For me, that is a sign to look elsewhere. If it can't be accurately comped what will your buyers do? Investors are looking to buy in an area that has a lot of activity. Lots of solds with low DOM.
Ask the realtor what they would list the property for today, after your planned rehab. What do they think it will sell for today?? What is the average DOM in the area. How many solds in the last 90 days? ( not many if there are no comps, RED FLAG!) Get a local realtor to show you the property and ask them for their opinion, ask the listing agent also. Just to get a feel, I wouldn't go by the listing agents opinion as my bottom line however.

Good Luck,
Michael

The subject property is on the outskirts of town. I just met the owner there. Apparently, the renters that he had in there came back and tore out all of the copper wiring and took the water heater. Anyway, the owner has already turned down offers of $45k and 13k. I've asked a realtor to run comps for me so I'm waiting for him to get back w/me. Then I'll decide what to do.

Thanks for the input!

Since it is a rental, you could use the income valuation model. For a ball park price, use the one percent rule where a decent cash flowing property will rent for 1% of it's value. For example if it rents for $800, theoretically it should be worth $80,000.

If purchased for Cash:
$800/mo rent - $320 expenses = $480 cash flow
12% Cash on cash return
7% cap rate
Seems to be a reasonable investment and a good place to start the negotiation.

I'll find out how much he was renting it for...I think he told me $500/mo. which would make it be worth $50,000 and that would make sense because he wants $55k.

Thanks.

Using "free" online sites like Trulia and Zillow are highly inaccurate and lack recent sales data. Your local MLS is going to have the best data. Another source is your area assessor. They will also have solds. At times, you can get all of the property cards in an area which have recently sold. This should provide the data you need.

Thanks for the info.