# Real estate values



## BigAl RIP

I do not agree the way a real estate agent determines a selling price on a piece of property . They really do not figure shit when coming to a price . They pull a few comps around the area and then suggest  a price  based usually on square footage alone . That is stupid . 

   A home with Stain Grade interior molding is worth more than finger joint trim . Plywood siding is not equal to lap siding and rock veneer or brick but yet I see agents trying to compare the two . IT IS NOT THE SAME !

   I honesty believe that when you decide to become a real estate agent you get a 1 hour course on pricing homes by comparing the square footage of  a few places in the area . I even had one idiot tell me you can only figure the square footage of the house and it does not matter how much land is with it when figuring a value . A 1/2 acre home is not the same as a  5 acre home .DUH!!!


 The reason I am writing this is because I wanted a current value on a property I own . The place returns  2% a month on my total ivestment . That is 24% a Year! 
   Based on return on investment  the property should be priced at $450-$475 thousand . The agent comes back with a 200K figure . DO I have stupid written on my forehead????

Where do they get these guys from ???


----------



## muleman RIP

You need to move it to California as they are saying how much real estate there and Arizona has rebounded. When you are out in the sticks it ain't happening. Seems odd the tax man sure looks at acreage when he does his assessment.


----------



## Kane

BigAl said:


> .
> 
> A home with Stain Grade interior molding is worth more than finger joint trim . Plywood siding is not equal to lap siding and rock veneer or brick but yet I see agents trying to compare the two . IT IS NOT THE SAME !
> 
> I honesty believe that when you decide to become a real estate agent you get a 1 hour course on pricing homes by comparing the square footage of  a few places in the area . I even had one idiot tell me you can only figure the square footage of the house and it does not matter how much land is with it when figuring a value . A 1/2 acre home is not the same as a  5 acre home .DUH!!!


Sorry, Big Al.  But the difference in interior finishes has very little to do with the initial asking price for a home comparable in SF and in the SAME general location, location, location.  Will it sway a buyer to pick the nicer home first?  Sure.

But so often folks spend zillions of dollars on interior improvements to suit THEIR tastes, while the next buyer could be woefully unimpressed   -   maybe even turned off.  As often as not a prospective buyer wants a plain vanilla blank slate to do their own thing.

And unless that 5 acres is zoned correctly, consistent with surrounding lots or actually has a tangible function, most buyers could see it as just too damn much yard to mow.

Beauty (value) is in the eye of the beholder.
.


----------



## Kane

BigAl said:


> The reason I am writing this is because I wanted a current value on a property I own . The place returns  2% a month on my total ivestment . That is 24% a Year!
> Based on return on investment  the property should be priced at $450-$475 thousand . The agent comes back with a 200K figure . DO I have stupid written on my forehead????
> 
> Where do they get these guys from ???


How much did YOU pay for it? ... and when?

But rest assured.  Big corporations (like Black Stone) are gobbling up distressed properties all across the county and turning them into rentals.  The cost to rent is skyrocketing, particularly in Sun Belt urban areas.  Rural areas?  ...  not so much.  But once again, Man's Greed is pushing the housing market to the same levels they were when the 2008 bubble went POP.

Good for the man with money, but for the rest of us, not so much.


----------



## XeVfTEUtaAqJHTqq

The valuation has more to do with the market and the bank/tax assessment than the actual building.  Tax assessors (at least in my area) don't look inside the house - they just look at the floor plan and the comparable sales in the area.

It's your job as the informed consumer to decide what you want to pay and make the offer.

If you are flipping houses you now know that the quality of the workmanship doesn't really matter since very few people actually know what to look for.


----------



## jpr62902

BigAl said:


> I do not agree the way a real estate agent determines a selling price on a piece of property . They really do not figure shit when coming to a price . They pull a few comps around the area and then suggest a price based usually on square footage alone . That is stupid .
> 
> A home with Stain Grade interior molding is worth more than finger joint trim . Plywood siding is not equal to lap siding and rock veneer or brick but yet I see agents trying to compare the two . IT IS NOT THE SAME !
> 
> I honesty believe that when you decide to become a real estate agent you get a 1 hour course on pricing homes by comparing the square footage of a few places in the area . I even had one idiot tell me you can only figure the square footage of the house and it does not matter how much land is with it when figuring a value . A 1/2 acre home is not the same as a 5 acre home .DUH!!!
> 
> 
> The reason I am writing this is because I wanted a current value on a property I own . The place returns 2% a month on my total ivestment . That is 24% a Year!
> Based on return on investment the property should be priced at $450-$475 thousand . The agent comes back with a 200K figure . DO I have stupid written on my forehead????
> 
> Where do they get these guys from ???


 
What type of property is this?  Commercial?  Residential?  Did the agent also check the comps on the investment income of those other properties?

Investment income valuations are certainly part of the analysis, but you may be coming in a little high.  If you're valuing the place based on 10 years of income, thats 45 -- 47k a year.  If that amount is 24% of your investment, then you're original investment is pretty close to, or just under, the agent's 200k asking price.  How long have you had the property?


----------



## REDDOGTWO

If in doubt get an appraisal done by a qualified appraiser not by a real estate agent.  Some agents just work with houses and some work with investment properties.  Sounds like you have an investment property and have a home real estate agent.


----------



## FrancSevin

Property is only worth what someone willpay for it.  A realtor is not comparable to the Tax assessor.  Different goals in mind.

A real Estate agent makes  commision so he will value youproperty as high as possible, or even more.  Then later  get you to sell at a "reduced"! price but never as a seller would they go in low.


----------



## BigAl RIP

Ok ... maybe I did not state it right . My beef is the lack of knowledge that most RE agents have when placing a value on a home or property . The first thing they do is pull comps for other properties in the area .WTF Lets try comparing Apples to apples , not apples to pinenuts!!! 
Sure we are all looking for that great deal but when a property is done right and meets every item on the wish list it should go for more than the Plain Jane next door . If it is to be an investment it better have the records to back up the price .

I buy investments . I demand a minimum 1 % return on investment per month . If I have a investment of 475 K in a property and it is returning a profit of $9000+ a month that is pretty damn close to 2 % in my book . It does not matter if I have owned it 1 year or 20 years . I never deal in dollars when figuring profit . That mistake will sink you . I look at profit percentage only .


The way I see it 

Price should be is based on this: Location , amount of land included , Cost/ type of structure , and Monthly Return on investment, if it is a investment property .
You give me those facts and i'll tell you what its worth . 

I guess i'll just say fuck it and keep going the way I do . Stumbling through life ,,, seeing double and drinking Dr.Rums .


----------



## FrancSevin

BigAl said:


> Ok ... maybe I did not state it right . My beef is the lack of knowledge that most RE agents have when placing a value on a home or property . The first thing they do is pull comps for other properties in the area .WTF Lets try comparing Apples to apples , not apples to pinenuts!!!
> Sure we are all looking for that great deal but when a property is done right and meets every item on the wish list it should go for more than the Plain Jane next door . If it is to be an investment it better have the records to back up the price .
> 
> I buy investments . I demand a minimum 1 % return on investment per month . If I have a investment of 475 K in a property and it is returning a profit of $9000+ a month that is pretty damn close to 2 % in my book . It does not matter if I have owned it 1 year or 20 years . I never deal in dollars when figuring profit . That mistake will sink you . I look at profit percentage only .
> 
> 
> The way I see it
> 
> Price should be is based on this: Location , amount of land included , Cost/ type of structure , and Monthly Return on investment, if it is a investment property .
> You give me those facts and i'll tell you what its worth .
> 
> I guess i'll just say fuck it and keep going the way I do . Stumbling through life ,,, seeing double and drinking Dr.Rums .


 
Real estate ageNts who "_ lack of knowledge that most RE agents have when placing a value on a home or property "_ don't last long in the business. GET ANOTHER ONE.

You seem to value property like an investment/banker. OK. But unless you are dealing with a commercial agent in commercial RE then the apples and oranges comparison is valid. But, Comps are the rule. They buffer cost estamates to the prime directive of the three most important realestate values,,,,,,,


1st) LOCATION.

2nd) LOCATION

and the most important of the trilogy 

3rd) LOCATION

It is where value resides, and where income potential resides, and where appreciated  value resides.

ANYTHING ELSE IS GINGERBREAD.


----------



## NorthernRedneck

I fully understand your frustration with real estate agents who don't have a clue.  I went to list my house last year.  Had the only real estate agent in town come to do her appraisal thing to list it.  She came in, took one quick look, appraised it at half of what I paid for 10 yrs ago.  She based it on the fact that there was a house a block away that had been for sale for six months for a low low price without selling(mainly because it's a small town and who wants to live next door to the biggest cocaine dealer in town?).  She was politely shown where the door was and told to not let it hit her in the A$$ on the way out.


----------



## waybomb

Real Estated agents? Crooks of the third kind.

So, they want to maximize your profit while they are hoping to sell quickly. 

Nobody sees a problem with this situation?

Do your own due diligence, find a MLS only house that works for 3% commission or less, and sell it yourself. You won't only save 3% or so, you'll sell the property for much more. 

I've done it. Every time I've sold. It works. there is absolutely nothing a Real estate person can do to sell your property. If someone wants it, they want it. all the talking in the world will not sell something a buyer does not want.

My perspective.


----------



## BigAl RIP

waybomb said:


> Real Estated agents? Crooks of the third kind.
> 
> So, they want to maximize your profit while they are hoping to sell quickly.
> 
> Nobody sees a problem with this situation?
> 
> Do your own due diligence, find a MLS only house that works for 3% commission or less, and sell it yourself. You won't only save 3% or so, you'll sell the property for much more.
> 
> I've done it. Every time I've sold. It works. there is absolutely nothing a Real estate person can do to sell your property. If someone wants it, they want it. all the talking in the world will not sell something a buyer does not want.
> 
> My perspective.


 

You Know .... That is about the best damn advice I have seen in quite a while . Pretty much how I feel . I don't mind paying 6% if they work for it . Most don't .


----------

