Call a Realtor. A common mistake many people make is they ask for comps but didn't specify SOLD comps. Just remember .....people can ask what ever they want but it does not mean they are going to get it !!! Work off facts not fiction
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Thank you Captain, but where does the realtor find the FMV's at? I'd rather find them myself if at all possible, that way I got 1st hand info and not from what someone told me. Is there a weblink where I can look it up?
For starters the FMV is not a "thing" you can go look up someplace. In fact the FMV doesn not exist at all (although it may exist someday).
The FMV is somebody's guess of what the property will sell for given 60 to 90 days to market it under the current market conditions. It is arrived at by looking at what other similar houses sold for in the same market. But the "similar" houses are not the same house. And even if they were the market conditions are not the same as they were when those houses sold.
Now here is the sense in which I say the FMV will exist someday: If you put the house on the market then people will make you offers. Those offers are the FMV-- they are what the house is worth.
Too often people take some FMV number and treat is as a real thing and try to build their program back from there. It is always a good thing to keep in mind that FMV is just a guess. Maybe a good guess made after research but just a guess. The guess is better when it is made by a person who has more data and less interest. This is why calling a Realtor for a FMV is not a good thing-- they have a tendency to over-estimate values in the interest of getting you to sign listing agreements.
So you are right to want to do the FMV estimate yourself-- but its not as simple as logging on the web. You have to get to know your market. Start going to open houses, see what people are asking for houses, see what they actually sell for. Try to figure out what makes a house more-or-less desireable in your market. Its an art, not a science.
commercial king sure can make something so simple seem so complicated. If you stick with SOLD comps as I stated it will be the closest thing to FMV you'll find. Although he is right in the fact that it is an arbritrary number. Whether you do them yourself or ask a Realtor to do it for you they will get them from the MLS.
Just for an example: I will call my realtor and say give me comps for every 3/2 1700sqft house which has sold in the last two months within a 10 mile radius. When she faxes me the MLS sheet it lists them all and gives an average (highest & lowest price) I, and I say again I will determine from that what the FMV is. I also take off 6% because anyone who has listed with a realtor has the realtors 6% commish built in.
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There are some online services that will provide a comps. Yahoo has one. I can not remember the URL's. If you really need them PM me and I will search my bookmarks.
I do think you will get better info if you build a relationship with a Realtor. They do comps every day and should know the area so can adjust for things that computers do not see quite as easily (lake and boat easements when the property is not close to being on the water is a local example for me).
Call a Realtor. A common mistake many people make is they ask for comps but didn't specify SOLD comps. Just remember .....people can ask what ever they want but it does not mean they are going to get it !!! Work off facts not fiction
[addsig]
Thank you Captain, but where does the realtor find the FMV's at? I'd rather find them myself if at all possible, that way I got 1st hand info and not from what someone told me. Is there a weblink where I can look it up?
For starters the FMV is not a "thing" you can go look up someplace. In fact the FMV doesn not exist at all (although it may exist someday).
The FMV is somebody's guess of what the property will sell for given 60 to 90 days to market it under the current market conditions. It is arrived at by looking at what other similar houses sold for in the same market. But the "similar" houses are not the same house. And even if they were the market conditions are not the same as they were when those houses sold.
Now here is the sense in which I say the FMV will exist someday: If you put the house on the market then people will make you offers. Those offers are the FMV-- they are what the house is worth.
Too often people take some FMV number and treat is as a real thing and try to build their program back from there. It is always a good thing to keep in mind that FMV is just a guess. Maybe a good guess made after research but just a guess. The guess is better when it is made by a person who has more data and less interest. This is why calling a Realtor for a FMV is not a good thing-- they have a tendency to over-estimate values in the interest of getting you to sign listing agreements.
So you are right to want to do the FMV estimate yourself-- but its not as simple as logging on the web. You have to get to know your market. Start going to open houses, see what people are asking for houses, see what they actually sell for. Try to figure out what makes a house more-or-less desireable in your market. Its an art, not a science.
All that being said, then how am I suppose to use this site to post "leads" for other investors as a BirdDog?
commercial king sure can make something so simple seem so complicated. If you stick with SOLD comps as I stated it will be the closest thing to FMV you'll find. Although he is right in the fact that it is an arbritrary number. Whether you do them yourself or ask a Realtor to do it for you they will get them from the MLS.
Just for an example: I will call my realtor and say give me comps for every 3/2 1700sqft house which has sold in the last two months within a 10 mile radius. When she faxes me the MLS sheet it lists them all and gives an average (highest & lowest price) I, and I say again I will determine from that what the FMV is. I also take off 6% because anyone who has listed with a realtor has the realtors 6% commish built in.
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Bird Dog Pup,
There are some online services that will provide a comps. Yahoo has one. I can not remember the URL's. If you really need them PM me and I will search my bookmarks.
I do think you will get better info if you build a relationship with a Realtor. They do comps every day and should know the area so can adjust for things that computers do not see quite as easily (lake and boat easements when the property is not close to being on the water is a local example for me).
John
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