Ok, We have been trying to get into a position to buy our home for a few years now, and I am VERY happy to announce that we are finally there!!!!! We have most everything we need to purchase our dream home! We could not be more excited! Now here is the tricky part... The owner of this home (this is a owner sold home) wanted the tax value of the home as a purchase price, me knowing absolutely nothing about real estate, asked my mortage broker if this was fair. She told me that I need to find a Realtor that can give me a "COMPS" report. This is where I am lost, what is this report? Where can I get one? How much does it cost to do this when we are doing a private party sale? I felt pretty smart until I tried to buy a home! LOL Can you fine friends help me out here?
The comp report is something that any real estate agent can run do determine market value for the home based on comparative sales of similar homes in the area (I'm sure any agent can better explain, but you get the idea). Tax value is only an approximation of the market value as of the time of the appraisal. In a down market, you should not be paying tax value since JoCo was just reappraised last year. The mortgage company's appraisal will probably come in below the tax value. Good luck!
I am no expert, but I am selling my house, and I am learning stuff everyday. It might be difficult to find a Realtor to give you a Comp if you aren't doing business with them. You might check with your attorney for a recommendation on that. My house is in a Clayton subdivision and the tax value came in at 130,000. The homes that are selling in my neighborhood are selling for between 115,000 and 122,000. I knew when I got that reevaluation, that it was somewhat above what I'd actually get for this home. I do have a Realtor that provided me with some comps, on where to start on a listing price. You can do some basic searches online of homes in the area where you are going to buy and see what some are selling for, if in a subdivision, search that area. You can get a pretty good idea of what homes sold for there. It won't be what a Realtor provides, but I think you find that the selling price is below what the tax value is on most homes, just as Bosox stated. I don't know how far you are in with trying to purchase this house, but I have found that a good Realtor is worth their weight in gold and it takes so much pressure off off a buyer and a seller. They are the expert, and so, if you haven't already gotten a buyers agent, you might want to look into that. Good luck to you!
Thank you both so much!! I had no idea that this was so complicated!!!!LOL I will surely look into seeing what a realtor may be able to do. Can I get one that will work with my mortgage broker? Or are they kind of the same thing... Gosh I feel like my head is going to spin off my shoulders! lol
No, they aren't the same thing, that would be a major conflict there. 8) If you have a realtor, please ask them to walk you through this. They should be able to do this for you or give you recommendations on what you should do next. If not, you need a new one.
Just playing devil's advocate here... If the seller wants tax value and homes are selling well below that, then you probably should move on. It sounds like they are a FSBO (for sale by owner) and quite frankly, they might owe big time on their loan. Of course they want tax value, we all would! But, if you buy this house at tax value, you are paying for a home that might not be worth it in this market. Usually a Realtor wouldn't show a home that is FSBO because the seller is trying to squeeze out every penny they can, and they don't want to pay a Realtor fee/commission. You, being the buyer, don't pay anything to a Realtor. The seller does! Seriously, it really would benefit you use a Realtor instead of jumping through the seller's hoops.
Thanks KDC! I contacted the best realtor around to see if she can help me, I agree I don't think I want to do this alone. 8) OBX, I was thinking the same thing! I went onto Remax website and looked at the homes sold around me, and they were built in the same year and everything and sold for much less! I think I am going to get a realtor to do this for me, and if my landlord won't budge then I will take my money and find my dream home elsewhere! I am sure glad that I asked because dang if I wouldn't have just jumped in not having a clue...wow I feel like a sheep...lol
There are alot of homes out there, good deals too; you've worked hard to buy your first home, so I'm glad you found a Realtor.
go to the website zillow.com you will be able to see alot of info about the house you want to purchase. It will tell when last sold, how often sold, what it is worth, and house prices of houses for sale and sold in the area.
You could pay to have an appraiser go through the home and give a value. I wouldn't likely use someone affiliated with my mortgage broker. In the current market, you could likely get a home for less than tax value.
An appraisel costs $250 +, they use the EXACT same information a real estate agent uses for a BPO. MLS. Nothing against appraisers, but for if she just needs to make sure she isn't overpaying, then a good, experienced agent will be able to tell her at no additional charge.
