How to find comps in an area

Question

Hi guys,

I’m a new investor and curious about comps.

Is there a place to look at comps? Or do people just look at Zillow or places like that?

Thanks!

Daniel Gutierrez · Answer

Hi @Derek York. There are many ways to getting the comps in your area. Below is a paragraph out of one of my last blogs that talk about this point. Hope this helps.

Knowing the rental competition or “comps” is much more than doing a google search for what other homes in the area are renting for. Although sites like Google, Zillow, Trulia, etc are very helpful in getting a rough idea of what the rental market is like, they do not give you the full story as to the landscape of the rental market or the important details what each rental offers. For example, you’re looking to purchase Duplex #1 and are using Duplex #2 that is three blocks away and also has two 2bed 1 bath units that are also 900sf each. Duplex #2 rents each unit for $1700/mo. It may be safe to assume that duplex #1 should rent out for the same however you never checked to see if duplex #2 offers such amenities as onsite laundry, garage parking, utilities included all of which add a great deal of value. Other factors such as bedroom size and layout or even the condition of the neighborhood all play a huge factor in the rental value and attractiveness of the home as those are the factors that tenants look and pay for. In general, you need to go visit the comps your using to compare your future real estate investment or you maybe undervaluing/ overvaluing the rents and attractiveness of the home.  If you need help in doing this analysis, a good property manager or knowledgeable focused real estate agent can help you analyze the investment landscape and determine what the real compatibles are.

Daniel Gutierrez · Answer

I have to disagree with Sam. Realtors can be a great help but it highly depends on the realtor. Not all realtors are created equally... Also, appraisers are fine but they have to live within such regulated box that they sometimes fail see the real comps and especially fail to where additional value can be derived. And don't waste your money with Realestatecompstoday.com; its a good approximation (similar to that of Zillow) but it's misses a lot important factors.

Caleb Heimsoth · Answer

@Derek York. Realestatecompstoday.com. They’ll do this for you, for a small fee (5-15 dollars) and in my experience they’re better at it then just using a Zillow agent and sometimes even just a normal agent.

Rowen Burney · Answer

I was gonna respond to this post but @Daniel Gutierrez kinda knocked it out of the park with this one.

Derek York · Answer

@Daniel Gutierrez

Thank you Daniel I appreciate all the info!

Sam Shueh · Answer

Realtors and appraisers are most skilled in finding comps. Lenders have specific requirements and only the professionals know how to pull and make correct adjustment.

Daniel Gutierrez · Answer

Thanks, @Rowen Burney. I had luckily just finished writing this potion of a blog article.

How to find comps in an area

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