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

Thanks for the info this helped me out alot.even though your trying to figure this out on your own when you haven't even started with a real-estate agent yet,meaning myself i was looking threw a few properties and i had to find the city tax and school tax and i contacted a few of the places that i had to call and i was told to look in another area or call another number and when i finally did get the person that i had to talk to they told me that they couldn't give me that info unless i lived in the area,but i let them know that i was buying property and that i need that info and still i was told the same.It wasn't threw the county court house,but the city township.

Well as you may have figured out it is the agent that can run those for you from the MLS. IF YOU STILL DO NOT HAVE ONE! Start calling:

Here is where to start: Call Remax, Coldwell Banker and Keller Williams. This is the best place to start. they seem to be more Investor Friendly than some of the others.

Keep in mind any agent can run comps and they are an integral part of your power team.

Also anything you get off of websites is an estimate!

Randy Bailiff
Dean Graziosi Real Estate Coach

You never want to use the tax assessor's estimated value of a property as it is usually way undervalue. It is really just a very general value used for tax purposes and should never be used by an investor to figure FMV.

I think everybody is getting confused here about what exactly your asking the realtor to do. In other words, if a realtor is taking you out and putting in the time finding you a house and/or showing a house that you are trying to sell, and advertising it in MLS, then he would deserve to be paid a regular commission. However, if you are simply using a realtor to obtain information such as the FMV on a property you wouldn't pay him a 6% commission. You would probably negotiate a flat fee for having him/her at your disposal to answer a question that will take him literally 10 min to find out.

You just made absolutely know sense at all. You wound up saying that the ARV is actually the same thing as the FMV; however, you started your comment by saying it WASN'T the same thing! Oh and I meant no offense by my reply, just an observation!

http://www.deangraziosi.com/real-estate-forums/everything-else/106174/fi...

Try it

new to this but my info would be if the house is 100,000 take the asking price divide by sqft that would be ur value.take 15% off the top break that down to the commision,closing cost(buyers), below asking price, and holding cost (us).deduct % for rehab n for profit.depends on how much need to be done and what kind of profit ur looking for.deduct another 5 grand for ur starting point of the offer.u can always adjust,make that offer! good luck like they say 25 to 1. steve

Always have your real estate agent run the comps. for properties. This is the most accurate and dependable.
FMV is an estimate of the market value of a property, based on what a knowledgeable, willing, and unpressured buyer would probably pay to a knowledgeable, willing, and unpressured seller in the market. An estimate of fair market value may be founded either on precedent or extrapolation. Fair market value differs from the intrinsic value that an individual may place on the same asset based on their own preferences and circumstances.

Since market transactions are often not observable for assets such as privately-held businesses and most personal and real property, FMV must be estimated. An estimate of Fair Market Value is usually subjective due to the circumstances of place, time, the existence of comparable precedents, and the evaluation principles of each involved person. Opinions on value are always based upon subjective interpretation of available information at the time of assessment. This is in contrast to an imposed value, in which a legal authority (law, tax regulation, court, etc.) sets an absolute value upon a product or a service.

Randy Bailiff
Dean Graziosi Real Estate Investment Coach

The best source will always be your real estate agent. They can runs the comps. on any property in your state.
It is the most accurate and dependable available.

FMV is an estimate of the market value of a property, based on what a knowledgeable, willing, and unpressured buyer would probably pay to a knowledgeable, willing, and unpressured seller in the market. An estimate of fair market value may be founded either on precedent or extrapolation. Fair market value differs from the intrinsic value that an individual may place on the same asset based on their own preferences and circumstances.

Since market transactions are often not observable for assets such as privately-held businesses and most personal and real property, FMV must be estimated. An estimate of Fair Market Value is usually subjective due to the circumstances of place, time, the existence of comparable precedents, and the evaluation principles of each involved person. Opinions on value are always based upon subjective interpretation of available information at the time of assessment. This is in contrast to an imposed value, in which a legal authority (law, tax regulation, court, etc.) sets an absolute value upon a product or a service.

Randy Bailiff
Dean Graziosi Real Estate Investment Coach

Hi gina,
how do you get start this program because iam lost.

The best way to calculate the ARV is with recent similar comps within 6 months old, within 500ft^2 and within 1/4 mile away using properties of similar quality. If no agent is available you can get most of the same comparables using the "see sales similar to" feature on zillow under the "nearby similar sales" comps half way down on the right side when you are looking at an individual address on zillow to determine the ARV. Not only does this provide you with recent comps of the same size and location, but it also gives you an indication of the work needed from the pictures.

Hope this helps.

Dave

If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125

This is what Matt Larson said at the Edge; please feel free to add to it. You will find your after repaired value by running the comps, sometimes the realtors even get it wrong.

1) Get 3-5 Sold properties, move in condition

2) Have to be sold with in 3-6 months

3) Have to be with in 1/2 mile radius

4) Same # bedrooms, same # bathrooms

5) Square footage has to be with in 20% lower or higher

6) Style/age should be the same- don't compare a 2010 ranch home to a 1900 two story victorian

If you don't get enough comps doing this, go to 9 months for solds, if you still don't have enough go to 3/4 mile radius. If you still don't have enough comps- TAKE CAUTION!

I use the Total View research tool to get all info on the property I'm interested in. They will show comps, and in small print underneath that you can click on "more comps from zillow." You can go through the list to make sure everything matches the guidelines. Write down the price per square foot for all of the comps, 3-5 only. Add them up and divide by the number of comps. Say it is an average of $80/sq. ft. Multiply 80 by the square footage of the property you are interested in. That is the ARV. Good luck!

Gina

Good explanation, Gina.

The only thing I add is wholesale vs retail comps. A retail comp is from the Solds that were bought from and purchased by owner occupants.
A wholesale Sold is a sale by a bank (REO) and often (but not always) sold to an investor. The spread between these two types of sales can be a fair amount and by separating the two types of sales you can get a solid resale comp, not skewed by REO's, as well as where the market is where we want to buy (even lower than wholesale.

-Tina

I appreciate the explanation on that. I have been running a lot better comps since the edge, but the REO's were throwing me off. Now, I will just throw them out : ) Well, maybe I'll just put them aside for awhile. I noticed you have been extremely busy since the Edge. I haven't watched all of it yet, but hopefully I can tonight sometime. I'm very interested in what you said about finding out your strengths in your team members. I'm probably a visionary which might mean I better find the other members of my team. I'm sure it will make sense a little more after I finish watching...

Gina

How do you know if you can trust the comps you get from your re agent? I had an agent do a cma for a property for me and the comps said that the property's ARV is approx $116k however i can look at other websites and get an ARV of $65k. How can I determine which is the accurate number? My biggest fear is calculating an offer based off of a CMA that my agent provides then offering too much for the property and not being able to pass it off to a buyer on my list because the CMA wasnt accurate.

Thanks,

Mark

Antonio, what I usually do is call a licensed appraisal. It will cost you about $300 for a single family residential but then you will have an idea. The reason I say have an idea is because no two appraisals will come up with the same figure but its the best and most accurate you can get. Hope this helps.
Raymond

That is good idea. But i have few concerns. What if the buyer backout from the deal? I still have to pay the realtor for all the time that they do the work to pull out the comp for me. How much do you think the realtor will charge at the closing cost? I believe in paying people well if they work with me. But I'm also to make sure that I get paid before I pay them.

The fair market value of a property is described as the price at which a seller is willing to sell and the price at which a buyer is willing to buy. The real estate surrounding a particular property has a large influence on the value of it. To determine a property’s fair market value, you need to know the values of the properties in its proximity--also known as comparable market analysis (CMA) or "comps." Typically, several different comps are used in determining the fair market value of a certain property.

Start by making a list of the features of the property. Include details such as building structure, foundation type, number of bedrooms and bathrooms, square feet, acreage and year built. Accurately assess the condition of property. The location--whether rural, suburban or urban--definitely affects the fair market value of a property as well.

Search for comps on a real estate values website or the county website for the property. Find and evaluate three to five homes, in the same neighborhood as your property, that were sold in the last 90 to 120 days. The comparable properties should all have the same number of bedrooms and bathrooms. They should be located on nearly the same amount of land. The building structures need to be the same or very similar, too. For example, a rambler-style home is not comparable to a colonial. If you need to generate more comps, search within a radius of 10 to 20 miles from your property.

Ask a real estate agent to help you find the fair market value of the property. Real estate agents provide CMAs to both buyers and sellers. If you are a seller, you can employ a real estate agent to run a CMA as a part of her service to you. A CMA is normally performed by an agent from her office, using various real estate tools. If you are a buyer, your buyer’s agent is responsible for helping you with home values.

Compare your findings to the value an agent gives you. A CMA is not the same thing as an appraisal--concrete evidence of property value produced by a professionally certified appraiser. Therefore, the agent’s CMA may be presented to you as a range of property values rather than just one solid number.

Randy Bailiff
Dean Graziosi Real Estate Investment Coach

Traditionally, a seller's agent works for the seller and a buyer hires a buyer's agent...and each pays 3% of the agreed price to their respective agents at close, right? Okay, so in one of his books, Dean says he offers his agent $1000/per deal...so I'm thinking if you're hyper-buying properties the agent makes more "thousands," right? The more deals, the more houses, more volume, more money from the deals for both (buyer & buyer's agent), right? And, of course, if is a FSBO there's no agent necessary. Is the $1000 extra on top of the 3%???
However, I'm fuzzy on this...I thought their was a standard agent percentage fees paid. Is there a difference if the RE agent is actually the listing agent? Someone please give me clarity on this subject! I'm not getting it. Did I miss a chapter? LOL Please correct me. Thanx!

Traditionally, a seller's agent works for the seller and a buyer hires a buyer's agent...and each pays 3% of the agreed price to their respective agents at close, right? Okay, so in one of his books, Dean says he offers his agent $1000/per deal...so I'm thinking if you're hyper-buying properties the agent makes more "thousands," right? The more deals, the more houses, more volume, more money from the deals for both (buyer & buyer's agent), right? And, of course, if is a FSBO there's no agent necessary. Is the $1000 extra on top of the 3%???
However, I'm fuzzy on this...I thought their was a standard agent percentage fees paid. Is there a difference if the RE agent is actually the listing agent? Someone please give me clarity on this subject! I'm not getting it. Did I miss a chapter? LOL Please correct me. Thanx!

Traditionally, a seller's agent works for the seller and a buyer hires a buyer's agent...and each pays 3% of the agreed price to their respective agents at close, right?
Okay, so in one of his books, Dean says he offers his agent $1000/per deal...so I'm thinking if you're hyper-buying properties the agent makes more "thousands," right? So the more deals, the more houses, more volume, more money from the deals for both (buyer & buyer's agent), right? And, of course, if it's a FSBO there's no agent necessary.
Is the $1000 extra on top of the 3% for finding exclusive deals???
Not sure how this works...
I'm confused on this subject...I thought a standard agent percentage fees were paid.
Is there a difference if the RE agent is actually the listing agent or a broker?
Someone please give me clarity! I'm not getting it.
Did I miss a chapter? LOL Please correct me. Thanx!

When you buy a house the sellers agent basically collects somewhere around 6% of the sale price. The selling agent splits that percentage with your agent, the buyers agent. You pay nothing. It comes out of the sellers side unless it is negotiated otherwise.

When you sell the house then you can negotiate the commission with your agent, say 5% instead of 6%. This money comes off the top of your selling price. Along with closing costs if you did not have your buyer pay closing costs.

You figure these and all other costs into your offer price. I usually just subtract 10% to cover commissions, closing costs, insurance, utilities, taxes and any cost overruns.

Say I want to offer on a property that has an ARV of $200,000
The property needs $20,000 in rehab to bring that ARV.
10% for all commissions, closing, insurance etc.
My buyer wants to make $30,000 and I want a $5,000 fee.
I offer $125,000.

Kathleen, the hardest part of this business is finding and controlling a deal that your buyers will buy while making your fee. PERIOD. That is what you need to concentrate on. Making offers!! What can I do today that will make $$$?? Commissions paid at closing are really, really simple. The hard part is finding a property that is ACTUALLY a deal.

Good luck!
Michael Mangham
Mentoring/Team Building Nationwide
MD Home Acquisitions LLC

after reading this thread! i gotta say propertyshark.com is rlly good as was mentioned by the other poster! just checking it out i was able to find an investor who owns alot of property and plan on calling him later on today! It wil be my first conversation with a possible investor! these forums are gold!

Trulia.com is where you can personalize/customize your searches for recently sold comps...or anything you're looking for.
Maneuver around their site to preset your searches. ~Hopes this helps!

Thank you, Michael! I appreciate your answer.

PS. Excuse my double post.

I will look at properties first on zillow or total view to get an idea of value. If it looks like it would have some value after looking at those sites I then just tell my real estate agent to pull me a CMA report for me on similar properties within a half mile radius of the property I am looking at.
That will usually get me super close to the value of the property.
Also that is the most accurate way to get the value of the property.

What a wealth of information on this one!
I agree on using totalview, and a couple of well known favorite sites. Then I use county information. I couldn't imagine constantly calling an agent just for comps. I would ask the agent when I'm in the act of making an offer and just want that final check of what I already calculated. then go forward with the offer and all that only if I'm involving the agent in the process.

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