Karen, Home Buyer in 10023

Assessing Value of a Home (so I don't end up buying something I can't recoup on; if bad luck results in selling within 5 years or less)

Asked by Karen, 10023 Sat Apr 7, 2012

I'm looking at a home small outdated 3BR ranch, 1.5 bath that lists for 400, but my research tells me 340-350. I didn't find the few comps my agent sent helpful (no apples to apples).
Having ruled out comparing to Flips (bought at low of market and made-over mint), and fixer-uppers, the zip code's recent 3BR sales (from Zillow, sorry T) average under 360, while averaging over 15% higher SF of living space and lottage than this home.
I also noted 2 homes of same model/block/lot sold twice in the past 10 years. Factoring in the zipcode's current market %, I get a current value of 346 and 350.
For one more valuation, a home on this block, same builder, same footprint, but 2 Fl 4BR 2bth, sold for 375 in 2009, and Zillow estimates it at 350 now.
Finally, perhaps least reliable: Zillow's map puts all of this model at about 325, excepting those whom expanded, remodelled and added pools, also having larger lots.
I've been advised to just add 'contigent upon assement value...' to the contract.

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If you're going for a mortgage the home would have to appraise,with that said if everthing you look at points to a md 300s price that's probably what the home is worth. Any questions feel free to contact me.
0 votes Thank Flag Link Sat Apr 7, 2012
Thanks!
Flag Sat Apr 7, 2012
Karen...Try this for searh and comp tool. Let me know if I may be or service. paularrigo.listingbook.com
0 votes Thank Flag Link Sat Apr 7, 2012
What William said is correct, the home probably won't appraise out if your numbers are correct. Because they are asking 400k doesn't mean that's what you have to offer. Keep your offer in line with your goals and value beliefs. You may be better off taking more time and looking for a highly motivated seller that will sell below market value so you will have built in equity. It takes longer, and is harder to find but there are people that must sell and will sacrifice price for time.
0 votes Thank Flag Link Sat Apr 7, 2012
Thanks, just wish I knew if ZILLOWS number were correct (grain of salt goes with every byte off the internet I guess).
Sadly, as a first timer, I've already been looking for a quite a while, losing out twice through failed negotiations and my own lack of experience. This seller is likely only motivate by cash (estate), as was the last house I tried for.
Flag Sat Apr 7, 2012
Don't rely on online comps, as some may be inaccuarate, too old, or not updated; rather ask your agent for comps, recently sold similar properties in the immediate area, see what that data suggests--if no similar style homes were recently sold, look at others within the same school district and similar size. Also check out http://www.mlsli.com
0 votes Thank Flag Link Sat Apr 7, 2012
Thanks, I just started my digging on MLSLI.
My realor's small handful of comps had only really 1 similar home, on twice the lot size, at 375. MLSLI has only 1 year of data on sales. Regarding values, there, the same houses price out higher than 'Zestimates', which is encouraging: The homes on the block (all same age and model for the most part), range 266–410, and average 355, which is close to where we are at as of today, but I have since learned there has been no recent repairs to infrastructure, so I can expect to do some overhaul to stay warm and dry.

It is annoying that any site allows the data to be heavily skewed by the listing price, and MLSLI just opts to use that AS the value, making it impossible to look at the home in question there. If I knew the condition of the homes sold, it would make comparisons easier.
Flag Sat Apr 7, 2012
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