understanding market values....
I am a relatively new investor and must admit I am really struggling with determining what a property is worth...I realize ultimately if the deal goes far enough we will need to do an appraisal and this will tell us the lending value.....However, when I am analyzing properties sometimes the pricing just does not make sense....for example two duplexes on the same street within a few blocks of each other....they appear to be in similar condition....One is a foreclosure listed for 97,000....another is a regular sale (not foreclosure or short sale) for 59,000....the foreclose is vacant and needs work...the regular sale is in good condition, has performing tenants in place for 650/side...I just don't understand why can be so different....When looking at properties I see examples like this all the time. Obviously, to me the regular sale with the performing tenants seems to be the better deal - particularly for someone like me who looking to buy and hold....However, these huge discrepancies cause me to second guess myself a bit....I think, what am I mssing here? Why is the property that is a regular sale so much cheaper....Its as though they put the price tags on the wrong houses....I would appreciate tips that anyone can offer on doing a quick analysis of value when I am considering properties. Thanks in advance for any insight.