High Comp Vs Low Comp Mentality
What do you mean a property value can have two different values before it sells? How can one appraiser come to a property and tell you it is worth one price and another can be 10-15% different on the same property? How can one investor say a property is worth $250,000 and another say it is worth $300,000. Investors tend to value a property with their personal intentions in mind. This means that they blind themselves to lower comps and tend to only look at the higher ones because they 'WANT' to make the potential profit margin. The problem becomes when they buy it, renovate it, go slightly over budget and then get less than what they wanted for the property. Now they either broke even or lost. You will find with experienced flippers that they take a much more disciplined and non emotional perspective on the projects they are looking at. They are patient and don't allow their own feelings or emotions influence what they believe to be the end value of a property. They are honest with themselves and therefor honest with their investments. If a property doesn't comp out at a high enough number, they simply pass and move on. You will find the more honest you are with yourself, the more money it will save and make you.
Ian Walsh