OfflineAll of the websites that I visited only provides estimates for single-family houses. Where can I find reliable estimates for multi-family units? I'm concentrating on properties in Jersey City and nearby areas.
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Fair Market Valuation
Posted on: Thu, 09/24/2009 - 18:09
Your best option is probably to use a Realtor.
Al
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I totally agree with Al, you should definately use a realtor when trying to do any fair market calculations. You can also seek out the services of an appraiser, but generally they are tough to get any information from. Remember, you are working with and using your own money when purchasing properties. You are not working with estimated money that you might invest.
Use up to date sold information provided from a professional realtor - that way you are not estimating. Great question, many people wonder about the same exact thing!
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Hi Manny,
We use the income method to determine fair market value i.e.
Gross income - vacancy rate + other income not related to rental - taxes, insurances etc.
This determines your NOI. Now apply your cap rate.
Best regards,
Fanbot
The greatest force on Earth, compounding interest. - Albert Einstein
The income method will help you determine the current market value of a multi unit better than any comparable could. You will pay less for a property not producing sufficient income to cover expenses versus one that has a great positive cashflow. You will find that most lenders will use the income method to determine the value of the property too and an appraisal second. In most cases, it is used because it is very hard to find two identical multi units in a given area that have sold within a reasonable period of time to consider them a comparable.
A multi unit is only worth as much as the income it produces. It is a great rule of thumb!!!
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