80 DEAN GRAZIOSI
Now let’s get to the actual formula and how to apply it to your comps to come up with an offer price that assures that you will cover your costs and realize your desired profit. We’ll work through an actual comp and valuation example. Home: We are about to make an offer on a home that’s 1000 square feet in size with an asking price of $100,000. This places the value (based on asking price) at $100 per square foot. Comps: We’re going to locate six comparable properties that closely match this home, are close by, and have sold within the last three to six months. We do locate six of them with the same number of bedrooms and baths and square footages of The comp values: We average the sold prices of the compa- rables and average the square footages as well. Our sold homes averaged $107,800 and 1100 square feet each. So our value PER SQUARE FOOT IS OR SQ FOOT Apply to subject home: 5SING THIS SQ FT NUMBER AND MUL- tiplying it by the 1000 square foot size of our subject home, we de- termine that the actual market value of the home is really $98,000. SQ FT PER SQ FT
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