How do I run comps for my house rehabs?
I'm trying to run comps for house rehab projects. I was instructed to run comps like this...
Look for 5 comparable properties. Start my search within 1/4 mile and 3 months, then go out to 1/2 mile and 6 months, then to 1 mile and 12 months. Once I find 5, get the sale price per square foot of each one. Take out the high and low number, then get the average of the remaining 3.
The problems that I have are that sometimes, even if something is within 1/4 mile, the comparable property could be in a completely different neighborhood with much better or worse homes. Or it could be off by 1 or 2 bedrooms or bathrooms. How do I adjust for this? Also, when I rehab a property, it will always have new granite countertops, new floors, probably new cabinets, etc. How do I know the condition of the comparable properties, and how do I adjust for this?