I have access to the MLS system in my town because my sister works as a secretary for an appraiser, and i was wondering if anyone could teach me how to do comps? I know this is asking alot, and I'm really sorry, but i must learn how to do this. Thank you all in advance.
The easiest way to do comps is to find all the homes in the area (within the subdivision) or within a 1/2 a mile from the subject property, at least the last three that sold. How much did they sell for and how many square feet? the are about the same size with similar features? Example: You find a home listed at $70,000.00 it has 3bd 1.5bth 1500sqft then you look for at least three homes that sold within the last six months to a year preferably ones with 3bd 1.5bth and as close to 1500sqft as possible. If your house is much bigger and you can't find anything in the last year that sold more than 1000 sqft and lets say it sold for $95,000.00, then you would divide the $95,000 by 1000sqft making the home $95.00 per sqft, then multiply your house $95.00 x 1500sqft for a value of $142,500 after the home is rehabbed to be in as good of condition as the comps. I hope this helps.
i use www.realestate.yahoo.com to pull my initial comps. you just type in the address and it brings up houses in that area. however, these are sometimes 1-2 years old, so when i get serious about a property i call my appraiser and tell him to pull some comps on his system.
This is a site that I've found is pretty accurate when the appraisal is ordered. I always check this and then call my appraiser before he goes out to see what he thinks what value we can get.
I hope this helps you, feel free to ask me any questions that I might be able to answer. Thanks.
Thanks David. That's a useful tool from BofA. I would suggest doing more work to get a more accurate number, but it is certainly a good start.
No problem Tony! I always check that first and then call one of my trusted appraisers that are kind enough to tell me their opinion of what they could get before moving forward. Best part is you're not spending any money when you're checking up compared to MLS or SiteX. Always here to help!