I saw this picture in another group and I had to share it here too, it's just great ...
I saw this picture in another group and I had to share it here too, it's just great !!
People take the price as a Torah scroll from Sinai and make big mistakes in the value of the property. You do not understand the price differences between the price estimate and the real value of the property.
Zilo's price estimate is called on the website - Zestimate. Zilo takes the recent sales made in an area within a certain radius weights it and makes an average and also gives us a certain range of deviation. The main problem is that Zilo has no demarcation boundaries, meaning that if a property is in a certain neighborhood where the value of the property is $ 50,000, and 200 meters away on the other side of the highway there is a neighborhood whose property value is over $ 100,000, we will see unrealistic property value in the weak neighborhood. Although Zilo is trying to correct the wrong situation when selling a property in the better neighborhood, there seems to be an unreal price increase on the other side and also the reverse when selling a low value property in the weaker neighborhood, a decrease in prices in the stronger neighborhood is seen.
Another thing is when a property is sold at auction or focalizer at a low price, about a month after the sale we will see a drastic decrease in the value of the property in Basilo, does that mean the property is now worth less - absolutely not.
Take into account that Zilo does not know what the physical condition of the property, renovated or not renovated property on the same street will be with the same price estimate.
Now the question arises how an inexperienced investor who does not know the area can be quiet and bought property at a good price? One way is to ask an appraiser, but if you buy an asset in poor condition that needs to be renovated, the assessor will give us his current valuation and not the value after the renovation. So the best way is to do research and test all the sales of similar homes in the last six months within a half mile radius of the miracle and the same neighborhood.
Such research is called in professional language - CMA and if you do not know how to do it yourself, you can get help from a broker who knows the area. Keep in mind that a good CMA report will contain at least 3 properties sold and 3 properties currently offered for sale. After checking the data you have seen that the price of your property does not exceed the property prices in the report probably the deal is good.
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Comps
Obviously.
Tachles,
What is different from market research that I do in 10 minutes with a computer on different sites?
Comparative market analysis. This is called comps
This is an acceptable report received from brokers.
Excellent post.
ACM
Also refers to
COMS?
Or is there a difference between the two?
Excellent rival post. Thank you for raising the issue (there is no entrepreneur who does not deal with this issue in front of his investors). And the picture you attached - ingenious and accurate?