What is the best method for getting current FMV on properties?

Have your realtor run comps on other simular properties in that area that sold recently.

I do not as of yet have a realtor to work with.

Ok I sometimes go to propertyshark.com and look to see what the house last sold for, who owns it and when it last sold. I can also look that up on ACRIS.com in NY. Then I knock 80k off of that price if it was during the boom because most houses around this area lost like 60-80k in value. You basically have to crunch the numbers. I do so in my favor to make sure I give myself room for error or unexpected costs.
The best way is to get comps from a realtor, But you can work around it if necessary.

Thanks a lot for your informative reply. I appreciate it.

Hi and welcome to the DG family!
Finding the FMV for today's market has me stumped too. But I am learning it. I re-read pages 129-150 in the "Profit from real estate now" book. It helped a lot!!
I am still learning so anyone here with more experience that is reading this PLEASE JUMP IN. So we both learn Thanks.

Thanks to the help from a wonderful person on this website that helped me with a method to get an idea of current FMV by FIRST LEARNING to get an idea of how to do comps. I am now able to get an idea on my own. I did not have an agent either.

From my helper - "making adjustments between a subject property and comps: The idea is to start with the sales price of the comp and transform it into an indicated value of the subject by adding and subtracting for the differences."

The general idea is:

Take your subject properties asking price of say $120,000.00
Pick some comparable properties in the same area that SOLD for around the same price as your subject.
Pick comparable props that are FOR SALE around the same price as your subject.

When looking at those comps take into consideration & make adjustments:
*square feet of property (to figure out cost per sq ft divide asking price by sq ft- example- $120,000. / by 1400 sq ft = $85.71 sq ft.)
*beds & baths
*age of home -year built
*lot size
*amenities
just to name a few.

You can go further into it, look at what may make a property more attractive to a buyer than the other to make adjustments.
Prop does or does not have - Pool, garage, level lot vs, a view etc. If these adjustments are done sensibly they can give you better idea as they are a matter of judgment.

For example From my helper- "Your subject has no garage, but the comp does, and it is felt to have contributed $6,000 toward the sale price. You subtract $6,000 because the subject lacks one."

I also found the info on this page helpful-

http://www.frontdoor.com/Sell/Home-Sellers-Guide-Determine-Fair-Market-V...

Try these sites too. www.eppraisal.com and www.trulia.com These sites are free.

Just to mention, I was petrified to call agents on listings I saw. So I gave it a whirl and have come to find out that SOME are very helpful in giving you info. But I also like to do my own drive by and check out the area myself. It is amazing what you find.
Hope this helps.
Good luck!!
Regina

that is one of the reasons to get a good real estate agent to work with.they can help you with your comps.sometimes they are the best source of this info.
that's why it is very important to get an agent to partner up with.you might have to screen out alot of them,but it is worth it!

The most accurate and most detailed comps come from the MLS database that only your real estate agent or an appraiser have access to. They have unlimited search capabilities. In other words they can search on any field on the MLS printout. Remeber comps need to be current. Make sure you check sales dates. Another benefit to realestate agent comps is the days on mkt field. This gives you a good idea of time needed to mkt property. Remember you make your money when you buy the property.

Although a good real estate agent is the preferred source for comps, you should also do your own research. Comparing a number of the sites listed in the book making sure that you take into account the dates and similar properties in that area currently for sale will give you a general idea. But I would highly recommend a real estate agent and you can use the info they give you and compare it to your research.

Dediacated & Motivated

You never know for sure what a home will fetch until you put it on the market, and then it is partly a matter of luck. Will the eager buyer who shares your taste in home style and neighborhood show up on day one or day 200?

Some Web sites -- including Zillow.com, HomeGain.com and Cyberhomes.com -- provide estimates of individual home values. These estimates are largely based on recent sales of nearby homes, and in some cases they are wildly off the mark. But they often provide a ballpark idea of a home's value.

You might come closer to the real value by talking to a local agent and looking at recent prices for homes that you know are very similar to yours. If you want to be more scientific and don't mind paying a few hundred dollars, hire a professional appraiser.

I'm eating all this info up.......

I'm eating all this info up.......

Regina,

This is a great posting. Thanks for the info, this is making getting the first deal alot easier.

Thanks,
Rick C.

Thanks guys for making this forum, even though I have been doing alot of property searching and determining FMV for alot of properties, you can never know everything about any thing. But one question that I have is while you are determining the Market Value for a certain property How can you Calculate what the property would be worth after you do repairs and a few renovations. Thanks for the help in advance!

Man, the more I read the more I gain. Thanks everyone. I've tried looking for comps myself by going to my county court house. It lead me to secure an agent. I agree that's the best way to go. We are learning to become or have become professional real estate investors. Invoke others to aid you in your success and let them be professionals in their fields. I myself want to be a jack of one trade and a master of one------REI.
lbrown

Reading these post have been very helpful.and I agree that an agent is probably the most accurate way to get comps. BUT, let's face it I'm trying to do 95% of this from my computer,and with practically zero money to spare.
If I get an agent involved, they suddenly feel (and maybe rightly so) that they should get a commission. That's $ out of my pocket at closing.

On this one forum topic alone, I have gleaned 7 websites that offer comps.
Correct me if Im wrong, but couldn't you average those 7 figures and perhaps the local Tax assesment and have something pretty darn close?

Does anyone have more websites that offer realistic Comps?

I'm open to more input,but this seems logical to me.
Please feel free to respond.
David England

Great article

Thanks guys! I really benifitted from this forum. I did check out eppraisal.com on finding the value of properties.

Thanks guys for all the info! I'm new at this so all the info i can get will help boost my confindence. I especially appreciate the breakdown Regina shared.

Page 130 Profit From RE Right Now has sites to look at for FMV. They are some very good sites.

You can look for local real estate agent websites that might have a link for comps. You can also go to your local Property appraiser's website and there may be link to recent sales. At my local site, it searches by sale dates, property use, market area, neighborhood or subdivision, and land use. Do not underestimate your local governement websites.

Remember, it is a good idea to check 3 types of comps.
1. Comps that are currently for sale. That way you will know the properties pricing you will compete with and if there are a lot of houses currently for sale in the area, you might want to try a different area.
2. Comps. sold within 90 days. You will know what people are actually paying, Also check how long they were on the market. If they are taking a long time to sell you might try a different area.
3. Comps currently under contract. You will know what today's comps are selling for. Check how long they were on the market.
Don't rely on website comps for your final analysis of your properties value. 1 block can make a difference in property value.
You have to get out and drive the area yourself or have an agent that works the area you are looking at.
Not wanting an agent is shortsighted thinking, pay them all the money and they work for you and will be available when you need help. Make sure the deal is right so all can make money. If do this on your own
you won't hit the volume you need. You must build your team.
Just my opinion!!

Good Luck To All,
Michael Mangham
MD Home Acquisitions LLC

How much can you pay a realtor ?

The realtor gets their money from the seller. You get your money from the buyer.

Thanks for your response to my question. this might be a siley question, but I don't know what it means. So, what is FAQ? And is 6% of what you will make in profit or 6% of what you are paying for the house? For example if I have a house under contract for about $90,000. Also how can one find who is home owners mortgage company? I found a house that the owner abandoned and I am trying to find his/her bank so I can talk to them about buying that house. So do you know how I could locate mortgage company of abandon houses?

Thanks! but I am talking about having realtor in your team. He/She wants to know what you as an investor will pay him.

This is good info. One question when you find a Realtor to work with do you necessarily have to pay them for finding the property? How does the Realtor get their share out of the deal? Do they talk directly to the seller for their payout? do you have to include something about the Realtor in your assignment contract?

I understand the concept of comparables for determining fmv. The total View website seems to be a pretty powerful tool. Would it be wise to use these estimates that the site figures? Is using the tax assessment not accurate then?
Peggy

Find a really good Real Estate Broker to work with you,ask them to meet you at the property to do a walk through.They will do a CMA report for free.A CMA is a Comparative Market Analysis,this will give you all the comps,and properties that sold in that area in the last 6 to 12 months.If it is a good deal and you follow through on the property,let the broker become your buyer &
selling agent and build a good relationship with the broker,and they will work with you and bring you more deals.

whurndon

I'm also stumped with the full market value thing also. Thanks Regina for telling
us about the pages to research from Profits From Real Estate Right Now. Need to reread.

I'm also stumped with the full market value thing also. Thanks Regina for telling
us about the pages to research from Profits From Real Estate Right Now. Need to reread.