Page 18 - Training Manual Port City Realty Updated

Double carport Single carport
Wired Workshop Pool (in ground only) Fireplace
Deck or Patio
Privacy Fence
Extra storage building Central Vac
Central Air or Heat Location
Waterfront and Acreage
$6000
$4000
$5000
1⁄2 cost of new pool or $5000-$7000 $1000-$2500 depending on type of construction $1000 if unknown
$600 for 12x12 (adjust for size if known) $1000
$500
$300
$2500-$5000 depending on size of home varies, but -10% for south of I10
Look at lot values unimproved
Location, design & appeal, construction type, condition & quality of construction and unusual amenities, etc. call for judgment calls. Read the remarks for comments about new updates and/or fixer uppers.
If the subject property is in a subdivision enter the area, status – sold, subdivision name, sold date (last six months)
If the subject property is not in a subdivision or it is waterfront, rural, etc. enter the area, status – sold, sold date (last six months), a similar square footage range, depending on the circumstance similar acreage or waterfront and do a search. Pick the houses that are the most similar to the subject property. You will get a screen where you can fill in the information about the subject property. Fill in everything you know about the subject property.
Deduct any sales concessions from comparable properties
Make adjustments concerning, square footage, condition, parking, bathrooms, size, age, and etc. using the attached adjustments.
*Remember you are making the comparables look like the subject property. Make sure your are adding and subtracting in the correct order.
Now look at your analysis. Look at the properties for sale. We do not base the list price on what other sellers are asking, however you do not want yours to be way out of line. If your price looks way out of line take another look at your numbers. We only use list prices if they are lower than the sales comparisons (when prices are declining)
Things to remember:
1. Usesalesfromthepastthreetosixmonths.
2. If comp is better than subject, subtract. CBS
3. Ifsubjectisbetterthancomp,add. SBA
4. Anyimprovementisworthonlywhatitaddstothemarketvalueoftheproperty.Inotherwords,
what a buyer will pay for it!!! It doesn’t really matter what it cost.
5. Only use comps where you can assume there was an informed buyer and seller. (no 1 time show
& sells or FSBOs).
6. Only use properties that are an arm’s length transaction. A sale where a parent sells to a child is
not arm’s length.
7. Onlyusepropertiesthatarenotanecessitysale.Aforeclosureisasellofnecessity.(unlessyou
are doing a CMA for another foreclosure), unless the majority of the sales are foreclosures.
8. Onceyouaddandsubtractlookatallyournumbers,butdonotaverage.If5ormorecomps,
throw out the highest and the lowest. Look at the most comparable comp (least number of
adjustments) and make you best estimate of what the property should sell for.
9. Lookatyouraveragedaysonthemarketandyourlisttosellpricetodeterminewhereyourlist
price should be.