What is the best way for out of state investors to run comps?

Question

Hi everyone - I’m currently looking into buying my first rental property, which will be out of state in the Cleveland, Ohio area.

As I look into potential properties, does anyone have any suggestions on how to setup my own comps? I have been using Zillow but find the estimates to be somewhat off.

Is an agent the best bet or there are specific tools/approaches people use to come up with a price estimate? Ideally I would love to visit the place in person and spend some time there but that is not feasible at the moment.

Thanks for all the help in advance!

Best,

Sahil

Anthoney Hanks · Answer

Hello @Sahil Gupta. a good agent can assist you. They can get the comps and be your boots on the ground. Find one that you like and I would say let them know you are a serious player. Show them pre-approval letter. Best of luck in 2020!.

Remington Lyman · Answer

@Sahil Gupta Like @Anthoney Hanks said agents will be able to give you the most accurate comps due to their access to the MLS. If you would like to run your own comps I would recommend using Zillow or Realtor.com

Sahil Gupta · Answer

@Anthoney Hanks thanks Anthoney, makes total sense. I’m already getting pre-approved but trying to do my homework in parallel :)

Apart from an agent, is there any other strategy you would suggest to come up with my own estimates?

Jacob Repreza · Answer

The only issue with agents and why we never rely on them for comps is first they have to know how to properly run them or else they'll be no help, and secondly because of time. If you need to make a quick decision on a property, last thing you wanna do is be waiting for an agent to send you their info.

I suggest using zillow as much as possible. If zillow is missing info then you can cross reference on property record sites and also consider getting some like propstream where you can run comps and they do a good job of organizing it.

That is going to be the best course of action until you build a relationship with a realtor to where they might give you MLS access and you can just log on and use it yourself.

Federico Gutierrez · Answer

Are you currently working with an agent? They will run the comps for you as part of their service in helping to establish an offer to presentBe aware of those agents that charge you for this simple service, then repackage it as something grand they have done for you. They are out here

James Wise · Answer

Best way to get comps is from an agent who will pull the data directly from the MLS. In an urban area like Cleveland, Ohio you want to look at the last 6-12 months of comparable sales over a quarter to half mile radius of the subject property.

Kathy Utiss · Answer

Zillow and realtor are good to a degree they both have their faults. But what industry doesn't. Realtors can be a good source. If it's not one you know ask for a BPO. Some will do free others will charge a fee. But you can get real close by using zillow, realtor, and realtytrac. Then netronline.com. Netronline is great for checking county records for taxes and liens. If that city, and state are online.  I think realtytrac does an excellent job of showing property info quickly and efficiently to make choices.

Jonathan Greene · Answer

You definitely need an agent on the ground in Cleveland who not only can run comps, but can explain the neighborhoods if you don't plan on going and doing the market research yourself. You have to be able to trust the comps because an agent can send you whatever comps he or she wants. So if they want you to think a price is right, they can send you higher comps and so forth. So build a relationship with a Cleveland investor-friendly agent, there are some on BP, and make sure you tell them you want to see ALL of the comps within .5 miles to 1 miles with similar BR, BA, house structure. Do not trust comp research on sites that have MLS streams because they are not always accurate on solds. Many of the sites hold active data well for listed properties, but once sold they need to be verified by the agent (on Zillow) to become a sold comp. The only reliable data is on the MLS and via a trusted agent.

What is the best way for out of state investors to run comps?

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