Doing Comps

Doing Comps

New to Real Estate · Raleigh, NC · Member since 2016 · 48 posts · 9 votes

Hey BiggerPockets Im wondering how you guys pull more accurate comps for your wholesaling business besides just choosing an average of a list properties

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Real Estate Agent · Weatherford, TX · Member since 2011 · 726 posts · 284 votes
9y

Are you talking about ARV (fixed up) comps to know what your investor's sale price could be?

Or are you talking about as-is comps, trying to get an idea what an investor might pay for the property in its current condition?

Different processes to determine each type of number. "Comp" is pretty vague.

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  • Real Estate Investor · Buffalo, NY · Member since 2013 · 227 posts · 318 votes
    9y

    Hey @Deonte Singleton I'm pulling not the average but the lowest.  The catch is that they need to be similar to your target property.  

  • Real Estate Agent · Weatherford, TX · Member since 2011 · 726 posts · 284 votes
    9y

    Are you talking about ARV (fixed up) comps to know what your investor's sale price could be?

    Or are you talking about as-is comps, trying to get an idea what an investor might pay for the property in its current condition?

    Different processes to determine each type of number. "Comp" is pretty vague.

  • New to Real Estate · Raleigh, NC · Member since 2016 · 48 posts · 9 votes
    9y
    Shane Woods I'm talking about the ARV comps how is the best way to find that?
  • Real Estate Agent · Weatherford, TX · Member since 2011 · 726 posts · 284 votes
    9y

    If you're not working with an agent, just start with Zillow. North Carolina is a disclosure state, so the sold prices in Zillow should be fairly accurate, within 5%. Not all the time, but close enough to get a good idea. Plus the pictures look good on Zillow, so you can get a good feel for finish out. You can search by sf, bedrooms, baths, lot size, etc & really get a good idea what things are selling for.

    Look at houses for sale AND houses sold. Houses for sale give you an idea what the competition will be.

  • Contractor · Charlotte, NC · Member since 2016 · 138 posts · 63 votes
    9y

    Ditto to what Shane said. I prefer Redfin to Zillow, but either will get you close enough. Start by trying to find anything same bed / bath count of subject property, +/- 10 years built, +/- 100sqft, ~mile or so distance. Expand if necessary. Also be sure to look at a picture of the property. Google map street view if not on Zillow. It should look similar (a 1200sqft two story townhouse is not a comp to a 1200sqft brick ranch). Try to get at least 2-3. Average out the price per sqft of your comps and then multiply that number by sqft of subject property.

    Go to some local meetups and network with an agent (access to MLS). Have them pull some comps for a few properties you're interested in and you do the same. Use that to practice. It'll get easier over time.

  • Real Estate Agent · Weatherford, TX · Member since 2011 · 726 posts · 284 votes
    9y

    Right, as @Brian Compton said, take yours and compare to those you receive from the agents you meet & ask to help you. Just don't ask them to run a bunch of properties for you to practice with. Maybe 1 or 2 properties.

  • Real Estate Agent · Weatherford, TX · Member since 2011 · 726 posts · 284 votes
    9y

    Another thing I like to do, is keep an eye on active properties, run my comps, then see what they sell for. See how close I am after the sales cycle is complete.

  • Kuba F.Pro Member
    Real Estate Investor · Los Angeles, CA · Member since 2013 · 2k+ posts · 694 votes
    9y
    Deonte Singleton given that you have Redfin in your area, I would use it instead of Zillow to get the most recent data as it's connected to the MLS. I have a video going through that process if you're interested. Otherwise get the freshest comps that are closest in location, that most closely resemble your property and make adjustments as necessary to make them as alike as possible. Cheers! Kuba
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