TOOLS SERIES House Price Estimation : More to RPR.com

TOOLS SERIES
House Price Estimation : More to RPR.com
Presented by Stephen Lee  with CRI

Outside the Box Loan Options 

Property Valuation:

-Zillow.com    Realtor.com     Redfin.com  ….

–NARRPR.com à Next Gen Report

-CMA

-Cap Ratio

-GIM

-Tax Comparison

Property Valuation/Appraisal.

1. Market Value:

        The most probable price a ready, willing, and able buyer, not forced to buy will pay a ready, willing and able seller, nit forced to sell, allowing a reasonable time for exposure in the open market.

2. Market Price:

       What a person pays for a property, and it may differ from the market value, depending on specific situation of buyer and/or seller.

1) Proptech Site Valuation

Automatic Valuation Model(AVM)
Zillow.com à

Realtor Valuation Model(RVM)
NARRPR.com à NAR Sponsored

2) CMA(Comparative Market Analysis) Approaches

      1.Local MLS CMA

1. 1. 2. NARRPR.com CMA

3) Tax Assess Value Approach

1.Two properties comparison In the same town

2.Ratio comparison between Tax Assess value vs. Sold price

          Tax Assess 1 : Sold Price 1 = Tax Assess 2 :  X

          X = (Sold Price 1 x Tax Assess 2) / Tax Assess 1

1. 1. 1. EX) House #1 Tax Assess Value: $320,000

                               Sold Price : $550,000

          Subject House : Tax Assess Value: $390,000

                                     Sold Price= ?

           —————————————————————————-

                       550,000 x 390,000 = 214,500,000,000

                      Sold Price = 214,500,000,000/320,000= $670,312

4) Investment Property Valuation

  1.Cap Approach : Residential or Commercial Income properties

      NOI / Cap Rate = Price

      (NOI: Net Operating Income = Total Income – Total Expenses)

      (Cap Rate: Capitalization Rate)

       Ex: $40,000 / 4% = $1,000,000

1. 1. 2. GIM (Gross (Rent) Income Multiplier) : Residential properties

      Annual Income x GIM = Price

       Ex: $4500 x 12 x 17 = $918,000  ( in Palisades Park)