Help dissect my market and comps, thx - Posted by Shawn

Posted by Ldk on June 16, 2001 at 24:30:24:


Help dissect my market and comps, thx - Posted by Shawn

Posted by Shawn on June 15, 2001 at 10:49:01:

I have 2 questions with regards to my area (market) and how to do comps. Let me start by saying, I am not an investor, just learning. With that aside let me describe my market to you. I live near a large town, of 100K +, I am looking at the inner city as my primary market. It contains rowhomes built in the 20’s to 40’s with small single family homes mixed in. There are about 10 different realtors working the area and only 1 that specializes in rundown inner city homes. The crime rate is low to moderate with an occassional mugging or assault and virtualy no murders. I took a drive the other day and counted over 60 homes (with out looking hard) for sale through realtors during my 20 minute drive. This might have been 1/4 of town so the market is moderate in size. To me this seems to be an excess of homes for sale. Some run down, as well as decent homes look like they have been on the market for several months. The downtown area is flourishing with new construction and businesses. There seems to be plenty of homes that would be perfect for the rehabber. OK now my first question(s). Looking at this information from a rehabbers point of view what can you tell me about the health of this market from the limited information I have provided? Now for my second question, comps. I have attempted to comp a few properties but am experiencing a sever problem. Once I have located a property in a neighborhood for sale, I find the sale price and then comp it using similar houses of the same or near the same features, lot size, condition, etc. However what is not making sense is the fact that the comps don’t make sense. Meaning, Some rundown houses have sold for $35K while some newly rehabbed homes in the same area, time frame, lot size, etc. have sold for less than $30K. It makes no sense to me. Can someone give me some insight as to what I may be missing, or if someone has experienced this in their own market please fill me in on what may be going on within my market.

Guy made $89,000.00 ON FIRST DEAL!.. - Posted by Shawn

Posted by Shawn on June 15, 2001 at 22:57:01:

Did that get your attention, just a short lesson, its all about marketing, just trying to get someone to answer my question from above. About Dissecting my market and doing comps. Sorry for the inconvience but remember the bank doesn’t tell you that it lends your money to people for more than what they pay you for your savings account :wink:

Congratulations… - Posted by Potash

Posted by Potash on June 16, 2001 at 08:27:08:

…on winning bonehead of the week!