Lesson 4: Residential Real Estate Valuation

August 30, 2016

Wed, Aug 31

Review:

  • Mortgage 101

Presentation:

  • Comparable Sales (aka “comps”)
    • Find similar properties recently sold (typically 3)
    • Calculate price per square foot
    • Apply price per square foot to your property
    • Adjust for key valuation drivers
      • Identify key value differences (e.g., 2-car garage, AC), if any
      • Estimate valuation difference and +/- value
  • Determining Property Values (YouTube video)
  • Estimate value of new listing
    • 3017 8th Ave. [list price = $269,000 | sqft = 1807]
    • Comps [ address | $ per sqft | Selling date ]
      • 2918 Country Club Dr. | $111.91  | 7/8/16
      • 2935 Country Club Dr. | $98.70 | 5/26/16
      • 3213 Northridge Dr. | $97.19 | 1/4/16
      • Average: $120 per sq ft @ 1,807 = $216,840

Assignment:

  • Identify 3 comparable sales for your property
  • Estimate property valuation based on your 3 comps

 

 

Justin

Justin Holman is CEO of Aftermarket Analytics, where he leads efforts to develop cutting edge sales forecasting and inventory optimization technology for the Automotive Aftermarket. Prior to joining Aftermarket Analytics, Justin managed corporate consulting for the Strategy & Analytics division at MapInfo Corporation, leading major projects for retail clients including The Home Depot, Darden Restaurants, Bridgestone-Firestone, Sainsbury’s and New York & Company. Before that, Justin served as Vice President of Software Development at LogicTools, now part of IBM's supply chain application software group. Justin holds a B.A. from Claremont McKenna College, a Ph.D. from the University of Oregon and an Executive Management certificate from Northwestern University's Kellogg School of Management.

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