estimating home value
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estimating home value (by Beth [GA]) Jul 10, 2018 8:18 PM
       estimating home value (by #22 [MO]) Jul 10, 2018 8:44 PM
       estimating home value (by JB [OR]) Jul 10, 2018 9:00 PM
       estimating home value (by LiveTheDream [AZ]) Jul 11, 2018 12:06 AM
       estimating home value (by LindaJ [NY]) Jul 11, 2018 5:04 AM
       estimating home value (by AllyM [NJ]) Jul 11, 2018 5:17 AM
       estimating home value (by Tom [FL]) Jul 11, 2018 8:26 AM
       estimating home value (by Robert J [CA]) Jul 11, 2018 8:45 AM
       estimating home value (by Ann [MA]) Jul 11, 2018 12:58 PM

estimating home value (by Beth [GA]) Posted on: Jul 10, 2018 8:18 PM

I've decided to sell my duplex after 12 years and I'm trying to estimate a value. There are not many comps for this type of property in Atlanta so I thought a good starting point would be based on income.

What cap rate is used for this type of asset. My total rental income is $39K. It's split evenly for each unit and it's not changed in 2 1/2 years.

Any suggestions on what I should use?

estimating home value (by #22 [MO]) Posted on: Jul 10, 2018 8:44 PM

I think you'd get more with a comparable sales approach.. if you're using income to determine price, I'd suggest increasing rents asap to get maximum yield from it. A great realtor is worth every might find a top local producer and see what they think...

estimating home value (by JB [OR]) Posted on: Jul 10, 2018 9:00 PM

Hard to believe there are not plenty of comps for duplexes in a city the size of Atlanta...

Find two or three agents in the area that are familiar with small multi-family buildings and get their opinion. It won't cost anything and you might decide to let one of them sell it for you.

Just don't base your opinion merely on what they tell you they could get you for it.

estimating home value (by LiveTheDream [AZ]) Posted on: Jul 11, 2018 12:06 AM

Duplexes are usually sold using comparative values rather than income capitalization or replacement cost.

But I would run all three and see where you sit. I sold my 4 plex based on about a 10% cap rate - which shows how poorly our area is doing compared to other areas. (But we're outta here pretty soon.)

Stick to realtors who work with investors and multis.

Here is what I discovered selling my 4 plex. It doesn't matter if it is turn key or a dump. Investor buyers are going to be cheapskates who think every property is a distress sale. I had people offering barely 1/2 of asking price. They just waste everyone's time.

Price right, ignore the clueless and plan for a long haul. Maybe you get lucky.

Nice thing about a duplex, you MIGHT find someone starting out who will pay retail and live in one side while renting the other. THAT is the buyer you want! IMHO.

estimating home value (by LindaJ [NY]) Posted on: Jul 11, 2018 5:04 AM

I agree with LiveTheDream, an owner occupier is what you are looking for. The rental side will pay for the mortgage, allowing the owner to create equity and save money for their next single family home. With that in mind, time it for lease expiration or put the tenants on M2M as they come due for renewal.

There must be some comps available. Even if you have to go further afield and calculate what an difference in the neighborhood might be worth.

estimating home value (by AllyM [NJ]) Posted on: Jul 11, 2018 5:17 AM

I used a realtor when my mother passed and I inherited the business. The results were horrible. They sent out a blonde miniskirt who put her hand on the paint in one hallway and said "this looks like lead paint". I should have shown her the door. She and a cohort at the realtors, a big firm with a good reputation, priced my buildings using unsold property amounts. The big First Time Home Buyer giveaway was in full swing and every junk property comparable was priced at 200K. Since this was for tax purposes I had to get another appraiser as my inheritance tax would have been huge. I got a private appraiser with one line in the phone book. He did a great job and my inheritance tax, 37 K, only went to NJ and not a huge federal tax. Don't use a realtor. They might send out a blonde mini skirt. You want an accurate value so you can get the place moving, not a realtor's self serving price. Then compare that to the market prices.

estimating home value (by Tom [FL]) Posted on: Jul 11, 2018 8:26 AM

Find an appraiser in your area pay him or her to do a written appraisal of the fair market value. You will pay the appraiser but you will have a good idea when an offer is made if they are low balling you.

if so make a counter, every buyer wants the lowest possible rice and every seller wants the highest and some where you will agree on the final price. Don't be insulted by the offer, if its low counter the offer and you may get the property sold.

Plus when the bank does the appraisal for the buyer you will be prepared if it is below the agreed purchase price. --99.56.xx.xx

estimating home value (by Robert J [CA]) Posted on: Jul 11, 2018 8:45 AM

I wanted to sell a pink elephant, a distressed area triplex. To make sure I got the real value, I did the following:

A) Asked my bank to give me an estimate of the value and how much of a line of credit they'd issue me.

B) Got an real estate broker to give me a BPO (Brokers Price Opinion), this is a legal accepted value for estate purposes.

C) Got a seasoned real estate agent to give me comp's and value she thought it could sell for.

Each of the above got an opportunity to walk the property and see inside all of the units.

Here were the results:

A) Bank estimated the property was valued at $450K.

B) The Broker's BPO, based on sales, estimated the value at $515.

C) The agent, looking for a listing, said she would list it at $550.

I ended up selling the property to one of the tenants for $500k and paid no commission. --47.156.xx.xx

estimating home value (by Ann [MA]) Posted on: Jul 11, 2018 12:58 PM

I think I may know your situation. We have been toying around of selling a 4 plex unit in a small town in the mountains,..about comps. well its a nice building in a rather poor town. over the years most of the applicants have degraded and are now on sect 8 or SS.

The next town in one direction is about 20 minutes away and much wealthier, comps there don't apply at our property ,.. in the other direction also about 20 min away ,.. the town is maybe poorer. can't find a single comp there.

Called two appraisers both that admitted it would be hard for them to do one. One (who is kind of a friend) Said she wouldn't want the job in that town concerning that building.

Thinking about doing the cap thing for the price,..

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