Calclation Issues-Valuation lower than sale price/

[Tony Carter]

Hey Everybody,

In my latest homework adventures, I've run into a conundrum:

While looking for deals, sometimes, my software gives Sales Price Evaluations for MUCH less than the sale prices on the MLS.

BTW this software says:

"Sale Price Evaluation-

Approximate selling price of a property based on the annual gross income, expenses, financing scenario and requested rate of return."

1.Has anyone seen this before? If so, how did you handle it?

2.Has anyone used this as a negotiating tactic when giving offers on cash deals?

Example-

Situation: MLS Price $5,000,000

Sales Price Evaluation: $3,500,000

Offer: $3,000,000 Cash.