Appraisals

[Jonathan RexfordFL 8]

Just as another tool. I use www.realquest.com it is a first american product. It has other great features as I can with a few clicks develop a targeted mailing list and have it in post card form in 10 minutes or less.

 

For comps it has been a good mainstream. I even prefer it over the MLS.

 

HTH

[MichaelC 160]

Nice link, JR. Thanks for sharing it.

[JCannon 0]

So, it would be just like if they bought it conventional? The only equity they would have is the option money taken off the purchase price.....

Very true. Is this the same for a pure option? Should we set up a Pure Option w/ a seller at full market value?

[Kimberly 0]

Should we set up a Pure Option w/ a seller at full market value?

<{POST_SNAPBACK}>

No! When doing a Pure Option, you're looking for the motivated seller's bottom dollar cash price. The difference between that bottom dollar price and what a willing buyer will pay is your profit. The lower you get the seller, the more profit. If the seller's price isn't low enough, it's not worth the effort and may cost you money (advertising something that you can't sell)!

[MichaelC 160]

Should we set up a Pure Option w/ a seller at full market value?

<{POST_SNAPBACK}>

No! When doing a Pure Option, you're looking for the motivated seller's bottom dollar cash price.

<{POST_SNAPBACK}>

Kim is right, JC. You need some profit margin built into the option price to make it an attractive deal for your buyer. However, (and you knew there was a however), an exception would be in an extreme sellers market you may be able to get away with a full price offer and still be able to flip it to another buyer for several grand assignment fee. This type scenario can work in markets where you find rapid, (and ridiculous), appreciation, and buyers lined up overnight to get their bids in. Of course, another appeal about Pure Options is the low to no risk aspect. Laying out ten or fifty bucks for an option that expires is not a tragedy.

[abohlig 0]

Thanks everyone for all the input!

 

MC you mention $4.95 for a CMA. What exactly is a CMA? I am guessing Comparative market analysis / comps? I went to the SmartHomeBuy link and looked at a sample. This looks like it is just comps.

 

I might change my tune as I become more familiar with my area's market, but these comps seem like a pretty big range. At this point I would feel confident with that for a CA, but not so much so for a SLO or a straight purchase.

 

For a SLO or a Straight purchase it might be worth the peace of mind to just spend the $17 to have a better idea of what the real appraisal will come back at.

[MichaelC 160]

What exactly is a CMA? I am guessing Comparative market analysis

Correct.

I went to the SmartHomeBuy link and looked at a sample. This looks like it is just comps.

That's what a CMA is, Alan. Sales of comparable properties to the subject property, usually for the past six months.

[Jason (AL) 1]

7:00AM?!  Was Jason in town again, with a few of his new found, uh, friends that he just met earlier in the evening? You know, Trixie and Fast Suzy? 

 

Ya know...I wonder how many times someone has threw my name in a post, and me not knowing it. I just so happen to take a gander at this thread.

I reckon it's time I do a search of the forums.

 

And by the way, the chicks weren't all that bad.

You get what you pay for.

 

Not to bring yet another post "to the bottom",

I second what everyone else has said...or something.

[Brian - L.V. 0]

MC you mention $4.95 for a CMA. What exactly is a CMA? I am guessing Comparative market analysis / comps? I went to the SmartHomeBuy link and looked at a sample. This looks like it is just comps.

 

That's correct. The thing I like about Smart Home Buy is their reports are pretty detailed. They have comps, list of nearby schools, any hazardous/waste facilities, and the demographics of the area including maps. Not bad for the price. I also use domania.com when I have all of the property information from the homeowner.