Understanding comps

8 Replies

hello,

Comps don't show the value of my property, just nearby similar ones. so, What is the best way to determine a property's ARV based off comps? In other words, how do I read the comps and get an accurate understanding my property's value?

Thanks 

Steve

@Steven Velez  

if the other comps are in similar or the same subdivision as yours then can go by price per sqft as well as condition of properties.  i would also see what is currently available that would be competing with your property.  for instance if i am seeing a lot of 4br homes in my subdivision for 100k for sale... then i need to price my 3br underneath that price accordingly to make sure i attract buyers.  good luck.

adam drummond

Are you talking about your property specifically or generalized houses that you are interested in? If it is a particular house that's owned I would ask a real estate agent for a comp. Honestly what I do is have my agent put me on the mls list so I receive all the for sale listing. This allows me to see all the new houses that come on the market.

Originally posted by @Steven Velez :

hello,

Comps don't show the value of my property, just nearby similar ones. so, What is the best way to determine a property's ARV based off comps? In other words, how do I read the comps and get an accurate understanding my property's value?

Thanks 

Steve

Nearby similiar property value gives you the answer to your question. market value is simply what someone will pay for a property. In the case where the property is in need of repair and you want to know the ARV. You check your area for houses that are fully repaired and see what people have paid for them in that state(within the last 90 days in general). Finding the accurate comps will help you determine what that value is. Consult with a r.e. broker, even better an appraiser to learn how.

Kudos,

Mary 

@Adam Drummond  thanks for the input, needed to hear that. 

@Elizabeth Colegrove I like your idea to see all the for sale listings, gives you a good feel for the market. 

@Steven Velez  

I look at every single one of them as they come through my email. I "KNOW" my market at least what people are selling them for :)

Just remember listing price is not the sales price.  In order to determine the value of your home, it is much better to have your agent send you sold comparables and then you make adjustments for the differences in these sold homes and your home

@David Landheer I am trying to figure out how to go about making these adjustments to get an accurate estimated ARV.

If a very similar home sold in your neighborhood; however it had a 2 car garage and your home had no garage, you would have to adjust the sales price of the comparable down to reflect the fact that it had a garage.  Likewise you would have to adjust the sales price upward if your home was superior in it's ammenities

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