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Updated over 5 years ago on . Most recent reply
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Estimating After Rehab Price With Poor Comps
My mom is trying to sell her house because she can't afford the mortgage payment. The house is definitely not going to an end user and will have to be a rehab. I'm still very early on in my real estate investing and don't know how to assess the full market value of her property based on the comps from her real estate agent. Additionally, I live out of state and am very unfamiliar with the real estate market she lives in. I want to give her the best advice possible in her situation but it is very difficult without knowing what the property would actually be worth in perfect condition. Her agent produced a list of comps (Link Below), but only 3 of them have actually closed and none have same number of beds/baths. Also, her house is 15-20 years older than almost all of the "comps".
Can anyone offer any advice on how they would determine FMV in this situation, based on the comps provided or any alternative methods they would employ in this scenario. She had listed the house for 6 months with only one cash offer which was from someone already in her network. She relisted the house a month ago and has had no showings or offers. She says the cash offer is still good and is for $195,000. I think she should take the offer but want to ensure she's getting the best price possible in her situation. Can anyone offer any advice or direction in this scenario? Any help offered is greatly appreciated.
Her house, is listed as a 4/3 with 2,550 sq/ft, built in 1978.
-Michael Minton