House #1 to buy or house # 2 to buy

[distanced]

House #1 ???????

House #2

I would plan to do a bit of work on each. I'll only be at the place for about 2 years before selling and they are all coming in at 120-125

 

[jackangel]

From the limited vantage point those pics offer, I like the first one because of the porch that goes around part of the house, and because the land around it is nice and flat and open.

 

[distanced]

I thought so also till I tried to only focus on the house if it didn't have the porch. they both have about .8 acres. both about 125. I'm really hopping for a lot of votes to help me out.

If you all will help... when I go see them next week, I can take a ton of pics so that all of you vet home buyers can aid a bro in his first 6 digit purchase.
YOUR HELP IS GREATLY APPRECIATED

 

[Zander1983]

Since you're not after a place to live in the longer term, I would buy the one with the most potential for growth and the bigger return.

 

[distanced]

BY JUST BUILDING SOMETHING MYSELF, I'VE FOUND SO FAR THAT AFTER LAND, AND HAVING A HOUSE THROWN UP, IT WOU COST MUCH MORE. i DON'T KNOW FOR SURE, BUT THAT IS WHAT i'VE SEEN SO FAR.

 

[ironmaster]

Can't tell from the outside. It's what's inside that determines value. How many baths, bedrooms, remodeled kitchen or bath, age of appliances, age of roof, type of heat, central air?????

 

[distanced]

i'LL GO TAKE A BUNCH OF PICS OF THE WHOLE THINGS OF WOTH HOUSES FOR YOU ALL TO HELP ME DECIDE ON.

i GIVE YOU GUYS 60% TOWARDS MY DECISION AT WHICH TO BY SINCE i'VE KNOWN YOU ALL FOR SO LONG

 

[Taps]

Post some picks of the inside, plus the surrounding area. The interior matters most, but the yard and general area are important too.

Also, throw up some stats. Square footage?, air conditioning?, garage?, distance to major areas (malls, schools, etc)?.

 

[Zander1983]

Location, lot area and sales of comparable properties in the local area (compare price/sq ft of land, etc.) are going to be the most important things to look at.

 

[Zander1983]

I would advise valuing each property by direct market comparison. Basically, you need to analyse recent sales evidence with the objective of finding the most comparable property rather than the average of several sales (although that might have to suffice).

You can chose whatever units you like, for comparisons sake:
- per square metre of land area
- per square metre of gross building area
- per square meter of net lettable area etc…

Its important to segment the market by locality and factors such as building type and quality, land area and so on…

Once the sales are analysed, you need to adjust for differences such as quality and land area. Allowances also need to be made for timing, i.e. to correct sales to a standard date, particularly if the market is rising or falling in your area at a substantial rate.

Additionally, particular circumstances of a sale might affect the outcome here. For example, adjust for purchases by an adjoining owner (they might be willing to pay a higher price than they should’ve), the vendor being a mortgagee or other anxious seller (the price might be understated), etc…

Keep in mind that the confidential nature of property transactions makes it difficult to obtain all of the sales details you require and reconcile which prices are outliers. You might be able to purchase reports that detail sales evidence in certain suburbs, and consult various estate agents.

This type of valuation is very easy – you can do it yourself and don’t require expert assistance. What you want to find out, at the end of the day, is how much the properties you are looking to purchase are ACTUALLY worth, not what you are being told by interested parties or what the prices being asked are. Obviously, you’re going to look for something reasonably or under-priced, once that is done.

Hope that helps