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Real Estate Comps

Real Estate Comps: Tips And Tricks For Finding The Value Of Your Home

Long ago in a land well before the invention of the internet, investors everywhere used real estate agents and appraisers to pull real estate comps. Appraisers and real estate agents typically evaluate homes currently on the market and recently sold homes in that area to determine the value of your home. Fast forward to present day, investors can do the same research as agents and appraisers to determine the value of any property on or off the market. In this article, you will learn all the tips and tricks needed to perform accurate real estate comps.

How To Determine Property Value Using Real Estate Comps

This section is a brief insight into the mind of a realtor or appraiser who can determine the price of a home. If you do not wish to evaluate the value of any given property, scroll down below for paid services. At the bottom of the article you can find our ” Paid Real Estate Comps Resources” section.

What Are Comps?

“Comps” or comparables are the average of three comparable homes within the same area, price, and condition of the home being evaluated. Real Estate agents and Appraisers use the multiple listing services (MLS) to sort through similar homes and ultimately choose an average of three to determine the price of a property. The Multiple Listing Service is a database containing all homes that already sold, pending sale or are currently “listed” for sale, only real estate brokers and appraisers have access to this service. Without being an agent or appraiser, the majority of people feel they cannot pull accurate real estate comps.

Read on to learn exactly how investors and homeowners can and do pull accurate real estate comps without the MLS. Furthermore, an alternative to pulling your own comps would be to work with an agent to pull comps for you, most will do so for free.

The properties that have already sold are the ones we will focus on. Choose three homes that have already sold in similar condition, square footage, and either on the same street or within .25 of a mile of the street. Other key factors to pay attention to are the school district, county, amenities, and overall central location. Once we have gathered three legitimate comparable sold homes within the last 6 months or less, then we can move on to determining home value.

Using Comps To Determine Home Value

Determining house value using real estate comps is when the nitty gritty comes into play. Every home is different and has specific features and amenities that change the value of it.  When gathering comparables one may find the square footage to be the same however the house being evaluated is a 3 bed 2 bath and the comparison is a 2 bed 2 bath this drastically changes the value. Another example is two 3 bed 2 bath homes being compared to the same square footage however one has a pool and the other does not.  Keep in mind, amenities such as a pool, office, porch, dining room, fireplace, built in bbq and many more can drastically change the value.

The constructional build also plays a role, such as if the house is frame, stucco, or block alters property value. If you cannot find homes within .25 of a mile that can be compared to the one you are interested in then move on. Do not waste time, energy, and money on dead end homes that cannot be accurately evaluated, there are plenty of ones that can be, focus on these.

If you are an investor interested in learning more visit our other blog post here to learn the issues encountered by early wholesale investors.

 

 

 

Online Tools For Determining House Value

With present-day technological advances, new free tools have sprung up. The method used by realtors and appraisers for pulling an accurate comparable market analysis became more accessible through these free online tools. Finding comps can now be done by anyone who possesses the ability to type a simple address in a real estate website search engine.

Free House Value Sites AKA Tools

Zillow.com – Zillow is an online free database where properties are listed and are accessible to anyone with an internet connection. Listing a property costs money, however performing a marketable analysis does not just beware of the “Zestimate” (Zillow’s property value estimate) it is often inaccurate. Search through Zillow for comparable sold, pending, and for sale properties.

Trulia.com – Similar to Zillow, Trulia is also an online free database of listed properties.

Redfin.com – Online Brokerage with access to a database of listed properties. As well as an online property valuation tool may or may not be accurate.

Realtor.com

Property Shark

Pay Property Value Sites

Home Smart Reports

Home Smart Reports offers an affordable way to pull real estate comps and an overall market analysis.

RealQuest.com

Real Quest is another paid online service for property analysis, comps, market analysis, and much more.

 

 

 

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