Property Valuation

[VicChung]

I have a lady that wants to sell me her 2 1978 bedroom condo for $200,000. It was assessed at $280,00 this year. However, I know that condos are probably selling for $220,000 right now.

My struggle is the valuation.

Would you do this deal?

 

[tbarcier]

Vic, are there not any comps sold in the building recently? You say "probably" why do you say that?

 

[VicChung]

QUOTE (tbarcier @ Nov 19 2009, 08:13 PM) Vic, are there not any comps sold in the building recently? You say "probably" why do you say that?

The reason I am worried about valuation right now is because you could buy a 2 bedroom that has recently been renovated in the inner city for that price.

 

[tbarcier]

Understood, but what about that particular building. Is the inner city the same area or across town? For an accurate value you need comps from that building or one like it near by. Also what is your strategy for this condo?

 

[Thomas Beyer]

QUOTE (VicChung @ Nov 19 2009, 08:09 PM) I have a lady that wants to sell me her 2 1978 bedroom condo for $200,000. It was assessed at $280,00 this year. However, I know that condos are probably selling for $220,000 right now.

My struggle is the valuation.

Would you do this deal?
look at THIRTY other properties online: 10 that have sold .. 10 that have been listed but not sold .. and 10 that had been listed but expired .. any good realtor can pull that info in 28 seconds .. then look at 9 (3+3+3) physically .. then you have a much better idea of value ..

You have to become an EXPERT at area and property type before you buy as an investor .. that takes some time !!

related read: How to get started http://myreinspace.com/public_forums/General_Discussion/61-4391-How_to_get_started_.html

 

[neill]

Hi Vic - also recommend that you review condo docs - poss even have them read by a professional, including reserve fund study, board meeting minutes, etc...

You want to ensure that there are no surprises (aka cash calls, special assessments) waiting in the wings - a familiar question that is on this forum lots "Ask me how I know.....

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