Lesson 4: Residential Real Estate Valuation
September 5, 2019
Review:
- Mortgage 101
- Attendance
- Gary Miller & Casey Edwards plan to visit in Oct/Nov. Date TBD.
Presentation:
“Your best offer is usually the first offer.” -Andy Holman
- Comparable Sales (aka “comps”)
- Find similar properties recently sold (typically 3+)
- location, size, construction style/materials, etc
- 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, solar panels, swimming pool, etc), if any
- Estimate valuation difference and +/- value
- Investopedia Video
- Find similar properties recently sold (typically 3+)
- Estimate value of a property listed for sale
- run through a few examples
- Zillow, County Assessor, MLS
- Sample Realtor’s MLS driven Comparable Sales Analysis (pdf)
Activity:
- Comparable sales analysis exercise
- Identify target property
- Identify 3+ comparable properties, recently sold
- Calculate Price per SqFt for each comparable property
- Identify differences between each comparable and the target property (e.g., additional bathroom, finished basement, 3-car garage, etc)
- Make price adjustments (e.g., +$10k, -$5k) to compensate for differences
- Calculate an estimated fair market value sales price for target property
Assignment:
- Watch Determining Property Values (YouTube)
