day I had a call from an investor friend who asked how I determine values in this crazy market. The first thing to do is to pull the comparable property sales. Comparable property sales are properties that are as close to the subject property as possible. I know that an appraiser would say that you could take properties from as far away as a mile but we know a mile away is a long distance and neighborhoods can change significantly in a mile. I look for properties as close to the subject property as possible. The best would be on the same street Cheap Tyler Myers Jersey , block or neighborhood. You want it to be similar square footage. If you are talking about an 1800 versus a 1900 square foot house your average buyer is not going to see that hundred foot difference. If you are talking about between 800 square foot and 900 square foot obviously your buyer would see the difference between those two houses. There should be similar bedbath configuration. Similar in age, age is something that is relative. If we are talking about a ten year difference between a house that was built in 1996 versus a house built in 2006 then yes buyers would see a big difference between those two houses. If you are talking about the difference between a house that was built in 1959 and a house that was built in 1969, still a ten year difference, your sellers won?t see a difference between those. You are looking for houses that are essentially the same in your buyer?s eyes. Now assuming you have that, what are the comparable sales? What are you seeing that has sold? In this crazy market it is no longer enough to know the value of the houses that have sold in the last six months. What you now have to do is look more at what is happening. Look at the trend. Break down those comparables and find what has been selling each month of the last six months so that you can see a trend. Yes Cheap Toby Enstrom Jersey , six months ago they were selling at this, five months ago they went to this, four months ago they went to this, and so forth. Instead of just saying overall they are selling at this level you want to see if they are going down. Are they going up? Are they staying flat? And if they are going down, at what rate are they going down? How fast is that decline occurring and is it picking up speed? Is it slowing down? What is happening with it? I also want to know are there buyers on the market buying or is the market stalled? My investor friend said there had been no house sales in the last four months. Well if there have been no house sales Cheap Tobias Enstrom Jersey , none, zero, in that area that concerns me. I can take a house and I can make it the best house out there at a favorable price and I will attract the buyers that are in the marketplace but if there are no buyers it really doesn?t matter what I?m doing, I?m not going to get it sold. You have to look at buyers. If there are no buyers I would definitely not be purchasing
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