 setting sales price (by Michelle [MA]) May 21, 2018 7:02 AM
 setting sales price (by S i d [MO]) May 21, 2018 8:02 AM
setting sales price (by JB [OR]) May 21, 2018 8:06 AM
setting sales price (by Roy [AL]) May 21, 2018 9:12 AM
setting sales price (by plenty [MO]) May 21, 2018 11:08 AM
setting sales price (by Robert J [CA]) May 21, 2018 11:30 AM
setting sales price (by Landlord ofthe Flies [TX]) May 21, 2018 1:54 PM
setting sales price (by phil [NY]) May 21, 2018 4:30 PM
setting sales price (by BRAD 20,000 [IN]) May 22, 2018 9:00 AM
setting sales price (by Michelle [MA]) Posted on: May 21, 2018 7:02 AM
Message:
How does one set a sale price when there are no comps for many miles?
We have a 4 plex in a area (small town) far from anything to compare it to.
Would it be done by income/expense formula?
The place is in good shape good plumbing,and electric,
costs
Not including maintenance or supplies (guess 1200)
elect 520.
trash removal 2664
sewer 2712
prop ins 5723
heating 3100
snow removal 1000re tax 3408
total 20,470
2- 3 bedroom and 2 -1 bedroom
income 37,500
Generally little or no vacancies,.
Income minus expenses 17,030
--96.236.xxx.xxx |
setting sales price (by S i d [MO]) Posted on: May 21, 2018 8:02 AM
Message:
Hi Michelle. Local customs may differ, but in my area a property 4 units or less would not be appraised or priced for sale based on the income approach.
More likely, other multi-units (duplexes, especially) could be used. A duplex is a half a 4-plex. Find duplex properties with a similar age, size, amenities, and located duplex and basically double the price. This give you a reasonable guess for what someone might be willing to pay. Throw it out on Craigslist or Zillow and see how many interested parties contact you.
If all else fails, use similar SFHs. This isn't a true apples to apples comparison obviously, but I've seen it done to get a ballpark on where to start.
I refinanced a 4-plex 2 years ago and had the same problem as you: no comp sales in the past 6 months. So we did the "double duplex" approach. --173.19.x.xxx |
setting sales price (by JB [OR]) Posted on: May 21, 2018 8:06 AM
Message:
Yes, I believe you could find approximate value based on the income it produces (cap rate). I would find the common cap rate for most of the multi-unit residentials in your area and calculate it from that. --50.45.xxx.xxx |
setting sales price (by Roy [AL]) Posted on: May 21, 2018 9:12 AM
Message:
If want to sell to an investor and your 4-plex earns a profit each month, I would sell that feature.
The last investor I dealt with I showed him my bookkeeping records to prove he would be earning 20% at the close of escrow. However, he was too stupid to understand ROCI and we did not do the deal. --68.63.xxx.xx |
setting sales price (by plenty [MO]) Posted on: May 21, 2018 11:08 AM
Message:
Put a high price on it and reduce. Soon you'll know the value. I would ignore the expenses and just ignore the expenses and price based on income. You know what you got. Someone else may not have those expenses. Let the buyers tell you what the need. You can agree or disagree. Sell or not sell. Hold or negotiate. Are you getting and feedback from realtor on setting a price? --99.203.xx.xxx |
setting sales price (by Robert J [CA]) Posted on: May 21, 2018 11:30 AM
Message:
I also went to list a 4 unit property, loans are similar to a home. Only 5 units and up are commercial loans. So your building is an easy sale.
To attract attention I wanted to list it with a low price. But to protect myself I had my realtor sign an agreement that since my "low price" was to attract several buys who would bid up the price, the agreement called for a higher price that I would accept.
When low prices came in and they Broker in charge of that realtor office heard I turned down a low offer, he demanded a commission, saying they got the price that I listed the property at. He didn't realize that I had crossed out a line in his contract and had a companion contract that his realtor agent singed.
I ended up pulling the listing and selling it to someone else 4 months up the road.... --47.156.xx.xx |
setting sales price (by Landlord ofthe Flies [TX]) Posted on: May 21, 2018 1:54 PM
Message:
If you can't find comps nearby, extend the area or the date range of your search until several comps show up. If it's too far away then maybe judge it by the average of solds and actives of comp houses. --108.69.xxx.xxx |
setting sales price (by phil [NY]) Posted on: May 21, 2018 4:30 PM
Message:
Hard to price, since we are talking about a investment property located in a rural small town, how many people could be willing and able to purchase said property? --73.197.xxx.xx |
setting sales price (by BRAD 20,000 [IN]) Posted on: May 22, 2018 9:00 AM
Message:
Michelle,
I'm selling several right now. Yesterday a very active broker told me a 6 month old comp is out of date and low.
When selling I pay for an appraisal (at a discount) and base my pricing on that. If there are negotiations I use the appraisal as a lever.
The buyer's bank will want their own appriasal so I give them mine to help. And guess what! I get my values on THEIR appraisal.
A few hundred bucks of research has made me up to $30,000 extra on one property. Knowledge is power and profit.
BRAD
--68.50.xxx.xxx |
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