Should I cherry pick only the ones that have good enough information about the home to make a deal such as having good comps? I have a ton of motivated sellers but some of them don't have enough comps for their homes. Should I stay away from these types of properties?
I think you should be calling any motivated seller you can. If you have their information, get on the phone with them and you can structure the deal
@Dan Barli Buying property seems to be tied to how much it is worth. How do I structure a deal if I do not know the ARV of the home because I do not have good comps?
Have you spoken with local realtors @Tony Marcelle to see if they can help you with getting comps? You can still tie up a property under contract even without good comps. Just make sure to reserve a period of time in which to do your analysis and make sure the numbers are good for you.
@Dan Barli I have not spoken to realtors. Can realtors get comps on houses that are not listed? I once had a realtor tell me they could not get comps on nonlisted homes.
Of course they can @Tony Marcelle . That's how they start their CMA process with a potential seller. The target house is unlisted, but they get comps to run their analysis so they can price it accordingly. I would suggest you contact some other realtors to find the ones that can help you.
A good REALTOR can get comps that are fairly accurate even if the home is not listed. You can make an offer based on the comp and then you can always adjust it up or down once you actually inspect the house.
@Jordan Decuir I have always heard homes have to be close in proximity to the subject home. The listed comps I see are more than 1 mile and last sold longer than 3 months. What if the square feet from the sold listed comps are more or less than the subject property? I am looking at MLS comps and trying to get a match as close as possible which is hard to do.
@Tony Marcelle they don't HAVE to be within 1 mile. As @Jordan Decuir said it's about choosing properties that are really comparable to the one you are looking at. Of course, the closer it physically is the better. And the sooner it has sold to the present, the more accurate it will be. An experienced realtor will be able to provide better answers and comp the property for you.
@Dan Barli You say they don't HAVE to be within 1 mile. Shouldn't that matter to me if that is what matters to the end buyer I am selling the house to? I want to get the comps right if that is what matters to my cash buyer. It needs to matter if my cash buyer is going to buy a house based on comps within 1 mile and sold in the last six months.
They should be as close as possible to the subject property, but one mile is probably tough to get accurate comps. Have the realtor expand the search a little to get you what you need @Tony Marcelle