Should I cold call all motivated sellers? or.........

13 Replies

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.

@Tony Marcelle Sounds like that realtor either didn’t know what he was talking about or didn’t want to do work (both of which are probably at least somewhat true). @Dan Barli is spot on, fnd another realtor to help you estimate market value. It shouldn’t be too hard to find an agent to pull recently SOLD comparable homes in each property’s area. If you are looking to flip then that agent may get a listing once you are ready to sell, so it is in their interest to help you. Also, if your goal is to buy and hold rental properties, you may want to get comparable sales and also rental comparables data from a property manager. A property manager likely has the same or similar access to your local MLS as an agent does there in your market, plus a property manager may be more in tune with the rental market than the standard real estate agent there. Best of luck!

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.

@Tony Marcelle That’s hard to say. Choosing comparables is less about distance and more about choosing properties that truly are highly comparable to the subject property. In terms of timing, rule of thumb is sold within the past three months, but in different markets that can be different. For example, if you’re in a quickly-moving market then a property sold three months ago may not even necessarily be comparable due to fast-moving market dynamics. If the only comparables that you can find are from 4,5,6 months ago then you may need to just work with that. The main point is that it’s hard for me to have a good idea way over here in Houston (Katy), TX. It’s a good idea to link up with a local agent and get their point of view on getting comp’s in your specific market I wish I could tell you more than that but real estate is very local...even more so, it’s actually HYPERlocal so that’s why having someone to work with that is in tune with the local market dynamics can put you in a good position.

 @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