If you have ever been a real estate investor or a broker, you have heard the term residential estimating spreadsheet. You will want to keep this article for reference.
Residential estimating spreadsheet is a sheet of paper that is used by buyers and sellers when they are preparing a transaction agreement. The sheet will serve as an outline of what they want in the agreement. On top of the sheet will be a series of questions which buyers and sellers answer and explain. The entire process is time consuming and can be costly if you are not prepared.
What is a Residential Estimating Spreadsheet?
The Excel pricing estimator works in a similar fashion to the real estate pricing estimator. They both use general sales data to help sellers and buyers determine the best way to price their home.
This form of estimating is also used for commercial real estate estimating. It helps buyers and sellers, especially the broker, to determine the proper costs of the project.
Using a spreadsheet has its advantages and disadvantages. There are several considerations that should be made prior to using a spreadsheet:
The mortgage obligations that you enter on the sheet will be inclusive of many factors. One of these is the interest rate. Make sure that you are using a realistic set of parameters. Otherwise, the mortgage agreement will not be as accurate as it could be.
Keep in mind that the data that you enter on a spreadsheet, when compared to real estate price estimates, is going to be somewhat inaccurate. The seller or buyer wants to get a feel for the property and how much the home might sell for.
When estimating the estimated costs, take into consideration the seller’s marketability, associated property taxes, and local area heating and cooling costs. If you are a broker, also take into consideration the buyer’s credit rating and how much their credit line is.
In most cases, owner-occupied homes are much more expensive to lease than apartments are. One of the reasons is that the land can be more expensive. Because of this, many buyers and sellers are attracted to a condominium.
Property tax is another factor that needs to be taken into account. Often times, a seller’s estimates are too low because they pay taxes that are lower than their actual property taxes.
As you are filling out the sheet, make sure that you are only comparing your landlord’s qualifications to the buyer’s. If the property is owned by an individual, then their qualifications are typically very different from the buyer’s. As a result, you need to make sure that you are comparing the seller’s qualifications to the buyer’s.
The purpose of a residential estimating spreadsheet is to get the information that you want. While it can be helpful, you do not want to use it as a substitute for professional real estate and property sales experience. YOU MUST SEE : residential electrical estimating spreadsheet
