the best way is to not only look at properties that have sold in the past 3-6 months but also look at the active listings as well
Campbell, NY (PRWEB) June 06, 2013
The ultimate goal of any investor is to cash a paycheck. In order to cash a paycheck, investors must be able to learn how to determine property value. This is a critical piece all investors must be familiar with and know how to do or else it will eat up profits very quickly and waste a lot of time because the numbers don't pencil.
Cameron explains in the video that the goal is to determine what the property is worth if it was in great condition. He calls this ARV. The After Repaired Value. So when investors find a property that needs a lot of work, they need to be able to determine the value of this home if it was in repaired condition.
Cameron shares several ways on how this is done in the video. First, investors can get an agent to do a CMA or also known as a Comparative Market Analysis. This is where a real estate agent will pull a list of comparable properties that are similar to the subject property in order to determine property value or at least find out what these "comparable" properties sold for.
In order to determine property value, Cameron says, "the best way is to not only look at properties that have sold in the past 3-6 months but also look at the active listings as well." It would be important information to know if a similar home is actively listed but has been on the market for 6 months. All this information helps the investor determine the property value.
He also talks about the MLS as a great tool for determining property value. It provides information to agents and appraisers so they can determine home values fairly accurately. They are able to see active listings as well as properties that have sold.
Title companies also provide "property profiles" where they can pull comps and tax roll data because they too have access to this information. There are some online free web sites like Zillow that provide information on what the home is worth. Although this is a great tool, Cameron says, "it's not always accurate. I'll always make a quick call to an agent just to verify my numbers and get a second opinion."
For those looking for more information on property values or how to invest in real estate can visit http://www.camerondirect.com