Question about comps

[Frank L.]

To the bigger pockets community. I need your advice..

My assistant/receptionist got some info from a potential seller. So I took the info and tried to see the comps and see what to offer the seller when I do get to speak with the seller.

The information that I got is that his property is a 4/3 and a 1600 sq ft, built in the early 1960's and owes under $50k, that needs no repair (that of course is debatable).

When I was checking on comps on websites, It states that the property is a 3/2 and a 1,150 sq ft. The property is built in the 1950's

So my assumption is that the seller had modified the property from a 3/2 to a 4/3 and from 1,150 to a 1,600 sq ft.

My questions are:

1. If you were in my position, how would you go about with this? Just note that I haven't spoken to the seller yet and I don't want to ruin our first call.

make an offer?
1a: By pulling comps that are 3/2 and that has a 1,150 sq ft and based my offer on that OR
1b: by pulling comps that are 4/3 and that has a 1,600 sq ft?

What I know for sure is that, I can't make him an offer in my initial phone call. So what would your advice(s) be? Any advice is very helpful.

Right now, I have no clue on how to proceed. I am new to REI.

[Tom Goans]

Frank L.,

In my opinion, and based upon almost 50 years of experience, comps are completely unreliable when used to estimate investment value or the property.

To learn the history of the property and confirm your suspicions, visit the county government offices, such as the planning department.

It is not recommended to assume anything when investing. Know more about the investment opportunity than any other person. This reduces the risk.

My method of considering a real estate investment and determining the value is far different. Far too many critical considerations are left out with your method.

This is just a viewpoint.