All Forum Posts by: Chris L.

@Hal Thompson and @Wayne Brooks, it's not that I dont want to hire and appraiser, it's that I am short on time to do so as I have an offer already. 

I need someone who can guide me on completing my own comparative market analysis or BPO or who would be willing to do one for me. I am going to be selling my 1 family house on a 7000 sq/ft lot as a knock down and I am just wondering how to figure out the value of my home. I have looked through all the tax records at homes on 6000-7000 sqft lots. The issue is that some of the houses that sold are new duplexes and/or older 2 families, which both sell for more than a single family home. Do I include duplexes and 2 families in my comparison sine they were not tear downs and are worth much more? Should I only use 1 family tear downs on 6000-7000sqft lots or should I include tear downs that were on 5000 sqft lots also? It seems that teardowns on 5000 sq ft lots are more expensive per sqft of land-not in overall sale value but per sq ft of land. So a single story on a 5000 sqft lot might sell to a builder for 620k and a single story on a 7000 sqft lot might go for 650k. Im just not sure whether I should include those 5000sq ft lots in the mix since they seem to be priced differently. I also wonder if I would deduct a  % off the price per square foot for the lot being on a corner??  It seems my lot is a 7000sqft lot but because i'ts on a corner they can only build a building that would t typically fit on a 6300 sq ft lot. I'm not sure how to factor that in. I have an idea and have been speaking to other folks on here but wondering what someone with experience completing a BPO would say. Any input would be appreciated. Thank you.

@Roy N., I notice that you invest in buy and hold rentals. What type of properties-houses, townhomes, condos etc did you find work best for you? I have heard to rule out condos and to stick to single family or duplexes. Curious what type of property has provided you the best return yearly, as far as rental properties. 

@Roy N., the lot is zoned for 2 family already, it's just a matter of what can be built because of restrictions on a corner lot. They need a variance to build as large as they would like. How would I go about getting a variance without the intention of building myself. 

@Adam Christopher Zaleski large duplexes are being put up left and right. They are knocking down small single family homes that are habitable. Many folks opt not to do major renovations and just sell to a builder or investor because they might only make 10k -20k more if they renovate in comparison to selling to a builder. Plus they dont have to deal with the hassles that can come with selling to an individual. Builders around here tend to only pay based on what can be built on the lot. I'm sure it is very different in your area. Individual buyers are a different story. 

@Jon Ree, I thought about that but I'm not sure of the cost and time involved in knocking down a single family brick home and how long it would take to get the variance. 

@Roy N., please see question above regarding 1 family, 2family etc. pricing..

@Roy N., when looking at comparables there are 1 family, older 2 family and new duplexes that are on similar size lots. Of course the older 2 family and new duplexes on 6000-7000 sq/ft lots are going for a lot more money than my single family that is on the same size lots. Should I only be collecting comparable lots that sold that have single family homes on them and old two families that wound up being teardowns? It seems that regular folks buy most two families and new townhomes for a lot more money than a simple one family on a large lot will sell for as teardown so it could skew numbers. 

I have a property that I may be selling to a builder as tear down and the builder states that he needs a variance in order to build the size building he wants to build and he can't be sure he will get it approved. Because of the need for variance approval the builder lowered his offer. Would it be worth holding off on selling and getting the variance myself so that I can get a higher offer? Is it even possible to get a variance if I'm not building but rather just wanting to get one so that I can sell with variance in place-this way the builder has no question about approval? Is there a fee to pay for a variance? I'm just wondering if it would be worth my while to get the variance in place before selling so I can get a higher offer. Any input would be appreciated. 

@Bill Exeter, so I would have to identify all properties and buy ALL the properties before day 46 to get all of my funds back on day 46. If I identify 3 and only get 2, it's not like I can find a third property and buy it after the 45 day period? Is that correct? So if I have identified 3 and only bought 2, the remaining funds will sit in escrow for 6 months and I wont be able to acces the funds or use them to purchase a property. Is that correct?