Real Estate Moment with Allen Watkins “Evaluate the Numbers”

$10,000+ Profit / Equity on Your Next Purchase

It always amazes me how many buyers do not apply this basic technique and how many Realtors do not teach it or know it. I watch buyers with their Realtors offer too high of a price on homes to the point that they will have more money into the deal it than the home is worth. The seller of course is happy. I feel bad because ethically I cannot say a word about my knowledge of what they are doing. My buyers however, benefit from my experience and knowledge.

“Evaluating the Numbers” should be used with every home purchase you make.
Your first step is very similar to how an appraiser would do it, you need to determine what the repaired value is, of the home your considering buying. This is done by;

  1. having the Realtor pull up the market activity within a ¼, ½ or 1 mile radius of your subject home. You are going to look closely at the homes MLS information sheets and determine the ones that are most similar to your subject home. Check the pictures, read the description and determine the ones that are in good to excellent condition and therefore represents retail /re paired value for the area.
  2. Best to find at least 3 of those and then compare the various features and arrive at an average retail / repaired value. All the features being similar you would total the sold prices and divide by 3 to get your average retail value for your subject home.
  3. Next you need to estimate the cost to repair the subject home to bring it up to the retail or repaired value. While I go into a lot of detail on this subject in the main course basically you;
    – write up an itemized list of the repairs / improvements / updates that you would want to have done to bring it up to retail value.
    – to accomplish this you take a contractor with your itemized list through the home to estimate the cost. This could also be a family member or friend that is knowledgeable in this area.
    – you could also take your itemized list along with pictures, room measurements, total square footage of the home to a building supply store and they will general help you determine the cost      because they hope to get your business for the materials.
    – These are estimated cost so you estimate to the high side so you cover yourself.
  4. Once you have your repair cost then you follow this simple equation. For example:
    100,000 repaired value (of course you would use your actual numbers)
    –  15000   your desired profit in order to do this deal.
    20,000  repair cost
    65,000  the most you can pay to achieve your desired $15,000 profit or
    equity in the home. Of course, if you can buy it for less you will and have more profit.  Now at least you have complete confidence and know your top dollar you can pay.

See my Free “Introduction Course – How to Be a Savvy Home Buyer” per the below Link.

At the end of this course I offer you the opportunity to CHALLENGE me, to prove me at my word that people just like you have made $10,000+ Profit / Equity where you live now or want to live.

Have an awesome day!

April 20, 2017

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