How Much Its Worth
I've found a property that is lender owned and needs lots of repair. How much is yet to be determined since I haven't been inside yet. Regardless, the property is roughly 5,000 sq and was a historic mansion at one point. The lender wants 142k. After checking the auditors page, the market value is listed at 188k, but I've heard that number is generally low. This is often good because then you pay less taxes. Somewhere I remember reading that county auditors often appraise properties at 70% below what it would actually sell for. Is this true?
Basically how do I figure out how much this house would be worth once its fixed up? There are no houses like it to pull comps from. Should I just assume the 70% rule and take 188/.7? That would give me a end result of 265k. Any thoughts would be appreciated.
Just spoke with the realtor listing the property and he said they had a real hard time figuring out FMV because its so big, so basically he said he didn't know. Not what I wanted to hear.