Property valuation not close to Asking price?

[Vince S.]

I'm new. Looking at a couple of properties and the valuation based on income information, expenses desired cap rate is giving a property value that is way off from asking price (mkt?) like a couple hundred thousand. Is this common? How do you approach these was the calculated value I believe should be closer to what you pay?

[Damon Pendleton]

Hello Vince and welcome. You should pay what something is worth, the asking price is irrelevant. Yes, it is very common for sellers to put property on the market with wishful numbers. It's also common for buyers to overpay for real estate. So you should be focused on staying disciplined to your investment criteria, whatever that may be. Good luck!