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Updated over 12 years ago,
Can't get good comps for analysis
So I found a house again. I'm starting the analysis and my Realtor (24 years experience/investor friendly) can't find any solid comps.
I'm sure this picture says more then I can type:
(Here's the link since it came out a little crappy: http://dl.dropbox.com/u/10748346/Comps.JPG)
The proximity of the houses are all great, no problem with that. The houses were all in good condition when sold from what I could find, and comp 1 and 4 had a single car garage.
Okay, the avg $/Sqft in this are is $132.68/sqft. I don't know how to estimate what a bathroom or bedroom is worth, or a 1 car garage. No clue what so ever.
So if we adjust the values with just the sqft:
Comp 1: -$29454.96 = $100,545.04 (Minus 1 Bed Plus 1 Garage)
Comp 2: +$6368.64 = $114,868.64 (Minus 1 Bed and Minus 1 Bath)
Comp 3: -$15523.56 = $114,476.44 (Minus 1 Bed)
Comp 4: -$23617.04 = $107,382.96 (Minus 1 Bed Plus 1 Garage)
Okay, here's some more calculations assuming a 1 bed or bath is worth $1,500 and a 1 car Garage is worth $2,500 on top of the previous calculations. I'm making these numbers up from thin air as a disclaimer, but I would think they are somewhat in the area.
Comp 1: +$1,500 - $2,500 = $99,545.04
Comp 2: +$3,000 = $117,868.64
Comp 3: +$1,500 = $115,976.44
Comp 4: +$1,500 - $2,500 = $106382.96
So with the, the avg is $109943.27 with a low of $99545.04 so if everything is okay, I would believe the subject property is worth around $104,744.16 or simply $105,000.
Is this good? I mean, the cops aren't perfect, but adjusted is it okay in your opinion? Also a concern I have is the average DOM's (112). Should I skip this based entirely on the DOM's? This area of my city does do good in terms of sales though. On a 1-4 scale of sales this place has been doing a 3 for May, July, and August. On June it did a 2. Not sure about September though.
Scale meaning:
1 = 0-3 sales
2 = 4-15 sales
3 = 16-39 sales
4 = 40+ sales
So this place probably averages about 19 sales per month.
The radius of this area this based on the scale's sales is <= 2 miles.
I hope this is good enough :D
Manuel