Factors You Should Keep In Mind While Evaluating The Property
Precisely determining the value of real estate plays important role and increases your chances in building wealth in real estate deals. A thorough real estate education helps a lot to check out the properties for primary evaluation of real estate.Checking Out the PropertyInvest some time and go for online real estate education. You will find numerous courses like Georgia real estate education, Florida real estate education giving you helpful tips to check out the property. Say, your last stop will be 476 Evergreen Drive, the subject property. How does it compare to your comps in condition? Is it bigger in square footage or smaller than most? Is the lot bigger or smaller? Does it have the same number of bedrooms and bathrooms? Are there impacts or amenities close by that will affect the sale price in relationship to the comps? This is why comparing a property is more an art than a science.Compare with Neighborhood PropertiesFrom your comps, you want at least three neighborhood properties that closely match the square footage, bed/bath count and lot size of 476 Evergreen Drive, your subject property. If those three are all pretty close in condition and there are no outside factors, the sale prices should be close together.Making any adjustments for size and/or room counts, the subject property market value will be in the range of the 3 closest comps. If there are a lot of properties listed for sale and they are all listed at a lower price, you’ll need to look at the listings closer; they could define the current top market value. Nevertheless, if there aren’t any current listings or just a few and those few are listed at a higher price, you might be able to support a higher value upon resale.Other factorsBut wait, you say, my subject property needs a new roof, there is no landscaping and the house has not been painted since it was built, the plumbing leaves something to be desired, and the electrical needs updating. Market value is going to be determined by the area the property is located in. Rehabilitation (Rehab) is often a requirement to bring a property up to its Fair Market Value. Even if you are inclined to become a successful broker then you should go through a proper real estate broker education.Does the property require considerable renovation?Obviously, no one is going to pay finished market value for a property that needs significant rehab. That’s where you, as an investor, come in with the knowledge and capability to accomplish a rehab allowing for the property to be sold at it’s fair market value. Your objective is to acquire the property at a price low enough to allow for rehab, and holding costs until the property can be sold at market value earning you a profit.If you are inclined to learn more, enroll yourself in any real estate investing course. In simple terms, fair market value is generally what a buyer is willing to pay for a property whose owner is not selling under duress — a variation of that time-honored trading axiom, “what the market will bear.”