FMV HElp

[loanconsultant]

I have lists and lists of properties anyway I did some research of the assessed values on some.
On one such example the assessed is $82,320 homeowner is $1930.00 behind in taxes,I searched the mls and found a property on that street selling for $420,000 and another on same street for 194,900.Is this big a difference because the 420 has 4 bdrms the 194 has 3 bdrms and the one I did the assessment on has 2 bdrms.How do I tell what a reasonable offer is?

[Dan Auito]

I have lists and lists of properties anyway I did some research of the assessed values on some.
On one such example the assessed is $82,320 homeowner is $1930.00 behind in taxes,I searched the mls and found a property on that street selling for $420,000 and another on same street for 194,900.Is this big a difference because the 420 has 4 bdrms the 194 has 3 bdrms and the one I did the assessment on has 2 bdrms.How do I tell what a reasonable offer is?

Loan Consultant, first let me say welcome!!! :SM144: There are a myriad of reasons why properties vary in their price, one thing I would do ASAP is to go physically look at all three properties to see if there are any obvious reasons for the wide variations 420 to 195,000 that's $125,000 for one more bedroom? Now that doesn't make sense so you have to go see!

If the owners are indeed selling, the old adage that whomever speaks first loses so ask the sellers of the two bedroom what they would take for it, then you have a starting point to start working down from if necessary, traditionally the cheapest house in a more expensive neighborhood is the one to buy do to the principle of progression tending to drag its value up along with the higher value homes surrounding it!

I would be looking at investingating putting and addition of a master bedroom and bath on real fast to raise the value substantially if possible, I guess more information is needed to add further insight and suggestion!

[Aldo]

In addition to Dan's sage advice, you may want to review similar listings in the immediate area and, also, check recent sales of similar nearby properties. Many major newspapers list recent sales in their Sunday Real Estate sections. If that is not available in your area, it may be worth your time to check recent sales at your county registrar's office.

[REIaddicted]

Market Value

Market value is the most probable price in terms of money which a property should bring in competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeable and assuming the price is not affected by undue stimulus.

Implicit in this definition is the consummation of a sale as of a specific date and the passing of title from seller to buyer under conditions whereby:

1. Buyer and seller are typically motivated.

2. Both parties are well informed and well advised, and each acting in what they consider their own best interests.

3. A reasonable time is allowed for exposure in the open market.

4. Payment is made in cash or its equivalent.

5. Financing, if any, is on terms generally available in the Community at the specified date and typical for the property type in its locale.

6. The price represents a normal consideration for the property sold unaffected by special financing amounts and/or terms, services, fees, costs, or credits incurred in the transaction.

http://www.dor.mo.gov/stc/friendly_development_v.htm