David Hintz - Appraiser

Those online valuation sites do not provide accurate information to determine value of real estate. If fact the two you mentioned aren't even close. The best way to determine after repair value, or even as is (before repair) value, is to get an appraisal. - Sun Oct 19 2008, 13:18

Steve brings up a good point - "although using an appraiser for such a thing would be effective, and potentially very comprehensive...it would also be very expensive. Typical appraisal fees are very close to the entire commission I charge to rent the home for a year" - however an appraiser would also include an itemized depreciation schedule and/or cost segregation survey of qualifying tangible personal property (in accordance to IRC §§ 168, 179, AND 1400L) for accelerated depreciation to increase the annual cash flow. The appraial fee would be one time and considerably less then the annual commissions over the average rental period of most residential rental properties, which is 5 - 7 years. Not to mention the cost approach to value (replacement/reconstruction) which could be used for insurance purposes. - Fri Oct 17 2008, 10:41

I would recommend contacting an appraiser for an indepth market analysis which would include a rent schedule and operating income statement representing market conditions and acceptance for the market area of the property you plan on renting, which is a common service provided to investors/landlords. - Fri Oct 17 2008, 09:12

David

I congratulate you on getting 3 written appraisals for free from 3 realtors/agents that are not licensed to do appraisals in Arizona. Use the information wisely because all 3 can be held accountable for their values and/or value ranges they have provided. - Mon Sep 8 2008, 21:36

Jay and Carlos are correct. When the bank is the highest bidder at the auction and takes back the property, that transaction is recorded for the amount of the default mortgage (what was owed to the bank). When someone goes to anyone of the online valuation sites, such as Zillow or Cyberhomes or anyother site that provides AVMs (automated valuation models), the values or value ranges and comparables provided are skewed and inaccurate because their algorythms include ALL recorded transactions in county records. Including bank foreclosures. That is why it is best to contact a professional in the industry who can do a live search for real estate data. Unfortunately there are many "professionals" that do not fully research transactions and will choose the one's that will achieve their desired results.

The large amount of foreclosures, short sales, and bank owned properties are contributing to the "dragging down" of property values across the valley and state and with the projected number of mortgages that are due to reset this year and over the next 2 - 3 years, more foreclosures and short sales will add to depressed market values and/or prevent a market recovery or bottoming out anytime soon. - Mon Jul 14 2008, 06:54

Michael has the best advice. Contact an appraiser to determine the actual market value, then contact your agent to adjust the price accordingly. Tax assessment value is very different from actual market value and is calculated and determined differently. - Sat Jul 12 2008, 23:18