How do I pull accurate comps without MLS access? Seller thinks $725k

Question

’m looking for some guidance on running accurate comps.

I know a homeowner who wants to sell their property off-market (no realtor). They told me they ran their own comps and believe the value is around $725,000.

The first thing I did was check Zillow just to get a rough idea, and Zillow’s estimate is closer to $650,000.

Since I don’t have access to the MLS, what’s the best way to pull reliable comps so I can make sure we’re working off the right number? I know the appraisal will ultimately confirm the value once we get under contract, but I’d like to get as close as possible beforehand.

Looking for advice on:

• Best free or low-cost tools to run comps
• How to adjust for differences in square footage, beds/baths, upgrades, etc.
• Any tips for analyzing off-market deals when the seller is anchoring on a higher number

Appreciate any insights from investors who’ve done this without MLS access.

Kenneth Garrett · Answer

@John Zurzolo

You can run comps using Zillow and Redfin.  Look at sold properties in the last 3 months to 6 months.  Compare the photos of your property to the ones that sold.  Make sure they are comparable as far as finishes, number of bedrooms and bathrooms, number of stories, square footage, etc.  This is the method I use and I find that my number is very accurate to my formal appraisal I get.

I run the comps and take the average of dollar per square foot.  You must be logical in your approach and subjective.  This is a factual calculation.  If the average dollar per square foot is $200 I then take the square footage to get my number.  If the building is 1500 square feet then multiple $200 x 1500 =$300,000.00.  That is your value.  Number of garages, whether there is a basement ( finished or unfinished) and other characteristics can also impact your number.  You might have to add or subtract based on those factors.  2 car garage v 1 car garage v no garage.

Alan F. · Answer

Akhil nailed it. To add...

3. Power lines, train tracks, busy surface streets skew comps. School districts matter alot.

4. Comps also help in determining which way that area is trending.

Definitely sold properties only.

I also average out square footage and arrive at a $/p sq ft to add more data.

Great thread.

Janice Carter · Answer

It sounds like the property may be overpriced. I strongly recommend working with an experienced agent who can pull accurate comps and submit the offer on your behalf. You can offer to pay the agent a flat fee or include in your offer that the seller covers your agent’s commission. Just because the seller doesn’t want to list with a realtor doesn’t mean you shouldn’t have one representing you.

Crystal Smith · Answer

We are fortunate in that we have access to the MLS in our market but for deals outside of our market we use REIBlackbook to pull comparables.  There's a cost associated with this system as we use it for much more than just pulling comps.  Another thing to consider is to establish a relationship with a Real Estate Agent and pay to become an unlicensed assistant.  My partner did this when he first got started because being an assistant gave him access to the MLS along with other tools that allowed him to pull his own comparables without having to constantly ask his agent to pull comps.

Dan H. · Answer

Here are some valuation tools:

Zillow: ZestimateRealtor.comPropStream: paid service but offers 7 day trialRedfinPrivy: paid service but offers 7 day trial. PennyMac: search for Pennymac home estimator. PropertyHub: AI

Keep in mind that things like level of finishes, desirability of street, landscaping, condition, etc is typically not taken into account by these tool.

If I am recommending one free choice, use PenntMac.   It is a true valuation tool that will list the comps.

Good luck

Steve K. · Answer

IMO the most accurate way to go will be getting the opinion of a top producing agent who is very active in that neighborhood. The next best thing would be paying for an appraisal but that isn't as fool-proof as people sometimes think it is. 3 appraisers might be just as far off from each other as you and the seller are, which tells you how accurate appraisers can be. Online estimates are good to get you within a very broad ballpark but beyond that they are not reliable, at all. They have no idea what the condition of the property is, if it's completely updated or a hoarder situation, if it smells like cats, if it needs $20k or $300k in upgrading to match the comps that the algorithm found, or how the micro-location within the neighborhood affects the value and desirability (which can be a big difference block by block and house by house), if it has foundation damage, etc. Sellers often think their home is worth way more than it is. What makes their home better than the comps at $650k? I'd ask a veteran local agent who is very active in that neighborhood what they think. They will know better than anyone else for sure.

Scott Johnson · Answer

1) Quick and dirty? Review Zillow, Redfin and Realtor.com's value estimates.

2) Learn to access your GIS/Public Records for your county. A lot of times they'll have a "comper" tool. You can also call the tax assessor to ask them what tools they have available to the public.

Ken M. · Answer

WHO'S "right number?"A property is worth what it's value is to you.If you want the property and I don't, it's worth more to you than to me. Offer the most you are willing to pay, tell the seller why it's value is that to you. If he values hanging onto the house more than your offer, you'll either have to move on and find another house or wait until he changes his mind. You can't force someone to sell for a price he disagrees to. Never attempt to teach a pig to sing; it wastes your time and annoys the pig.

John Zurzolo · Answer

Thanks for this response. I never heard of REIBlackbook also makes sense becoming an unlicensed assistant.

How do I pull accurate comps without MLS access? Seller thinks $725k

Most Popular Reply