If you are reading this expecting to see part II of my series on the changing real estate market, I apologize but you’ll have to wait for next week. This is a big week for me personally – my youngest son graduated from UCLA last weekend and my oldest is getting married this weekend – so I haven’t had the time to finish doing the research. I think you will find this article very informative in the mean time.
In the Professional Real Estate Investor class, we teach how to create a CMA (Current Market Analysis). In this article, we’ll look at the basic elements that will help you understand a CMA on residential property.
If someone were to ask you what your home was worth, what would you answer? I typically hear, “Well the guy down the street sold his house for $$$, and my house is much nicer so I’m sure it’s worth twice as much…” Sound about right?
Valuation of property is broken down into two elements Tangible and the Intangible.
Step One – The Tangible: What other properties have sold for in your neighborhood, otherwise known as comps. You also need to consider expired and current listings. Depending on the market, expired and current listing can provide a better picture of the value today…. Continue Reading
