I am looking for advise on how to determine comparable comps for a potential flip property!
Purchase price: $180,000
The home is 1,110 sq ft, 3 bedrooms, 2 bathrooms. I had my agent pull comps within a .25 mile radius. The homes range from a sale price of $300,000 - $375,000 all with square footage between 1400-2000 so the house I am looking at is significantly smaller. I am having a hard time determining why the sale prices are all over the place. There is nothing that stands out about the higher selling homes that I do not see in the lower selling homes.
Here are data points on some of the comps,
Sale Price: $375,000 1674 sq ft - recently renovated by investor
Sale Price: $361,000 1516 sq ft - renovated in 2017
Sale Price: $330,000 1770 sq ft - not renovated, outdated and needs improvements/renovations
Sale Price: $308,000 - 2100 sq ft - not renovated, outdated and needs improvements/renovations
Sale Price: $299,000 1410 sq ft - recently renovated by investor
Any tips on what to research or aspects to look into as to why some of these homes were able to sell for higher than others?? HELP!
@Cassie Jones Just my 2 cents on this, but try and focus on the comps that are in the same residential sub-division if you can, and of course those that are the most recent. I have homes 1/8 of a mile away in a different sub-division that are completely different PPSF then my sub-division. If you have a few comps 'down the street' in the last few months I would use their PPSF to come up with a total (this works better in certain parts of the country however then others). Lots of reasons for potential variances but in the end, if you have a realtor who knows the area, they should be able to figure this all out for you.
Numbers sound pretty good though high-level, hope it works for you and best of luck!
@Cassie Jones - I'm lost. You said nothing stands out about the higher priced homes, yet you say that the top 2 are renovated. The only outlier is the last one, so figure out the reason it sold for below expected. Is it on a busy street? Was it BS renovation (ie, cheap crap as opposed to quality)?
Also, verify the square footage via county records, not via MLS. It's possible the numbers are off.
Lastly, if I had to take a stab.....I'd guess your place renovated will be closer to $310k-315k. It's considerably smaller than the others. Unless there's something unique that gives it extra value.
@Jon Crosby Thank you for the insight! I believe they are all in the same subdivision but it's worth me double checking!
@Tchaka Owen I should have specified, nothing stands out in terms of the renovations completed for the ones that I mentioned were recently renovated. Based on the pictures, they look comparable in terms of quality, finishes and the style of the home. I realize pictures can be deceiving so maybe that is part of the problem. For the non-renovated homes it's not comparable but I still can't figure out why it sold for higher than a recently renovated home. Anyways, thank you for the input. I'll need to do more digging on the $299,000 home.