Running the numbers

[Billy Rowe]

Ok here’s my question.

I’m running the numbers on a property that I’m interested in (for the first time by the way) Trying to get a Fair market value. Here’s what I’ve done thus far.

I pulled 10 properties that have been sold in/near that area for the last year that has the same criteria as the home I’m interested in (bed rooms# bath# etc.) . The formula I’m using is: Price per Sq foot Avg. of the 10 homes I pulled X Square foot of the house I’m interested in. The number I get is 66261.57 the asking price of the home is 74950.00, 8689.00 higher than what I determined the fair market value to be. I also am interested in getting my 10% discount when I buy (That’s what I’ve read is a good starting point) that would mean my offer would have to be 59635.(66261-10%) I think I would get laughed right out of this house if I offer that. I just realized I haven’t asked my question yet lol. What am I not doing right with these numbers? What do I need to take into consideration before making an offer? As I stated before this is the first home I’ve attempted to run the numbers on, so I’m sure I missed a step or 10 : )

Thanks!!