I’m pretty sure everyone runs comps differently. But what would be the best way to have the most accurate comps... to keep and build a positive relationship for your buyers?
just be totally honest in your comps. Don't try to cheat and throw a low one off the stack. You'll want to find out how appraisers in the area value real estate in your area.
In my area, the value is highly affected by location, views, and finish level.
In other areas, it's almost purely dollar per square foot since many of the other factors tend to be equal.
In my area, you'll see a house sell for $200/ft right next door to one that goes for $438/ft. That would boggle the minds of a midwest appraiser I think.
If you aren't fully confident in your ability to comp, ask a real estate agent to prepare a CMA or a BPO for you. They might charge you $50 for a BPO (or they might not). A CMA is usually free if they feel like they might get some future business from you.
The best resource for this would be develop a relationship with a broker/agent, in your market.
Make them an offer they can't refuse.
You can say:
" There are times that I will come across a seller, that I cannot get a price that works for my buyers. When this happens, I would be happy forward you that lead, so you can attempt to get this listing. In exchange, I would like "X" number of CMAs per lead and $100 cash."
Additionally, there is a section in J Scott's, "The Book On Flipping Houses" that talks about how to do comps. Although the book is geared towards flippers, I believe that it is good for wholesalers to know as well since our buyer very well may be a flipper. The book is available on Audible and in the BP Bookstore.
Hi! I'm a real estate agent (since 2012) and newbie wholesaler. I look at the following:
House type: If the subject property is a rowhouse, your comparable must also be a rowhouse, etc.
Size: within 15-20% of the same size of your subject property
Beds: Subject property and comparable property should have the same # of bedrooms (otherwise you'd have to make adjustments and if you have no experience with making adjustments, this can mess up your estimate)
Baths: Should be the same #, but there is a little wiggle room if you can't find enough comparables.
Age: within 15-20% of the same age as your subject property.
Neighborhood: Comparables should be within the same neighborhood. This could mean within a half mile, same school district, etc. You kind of have to know the neighborhood for this one because a house can be only 2 blocks away but in a better school district or a different neighborhood. That could disqualify it as a comparable.
Here's the key: If you are looking to get an estimate of the subject property's current value, look at a combination of active listings, pending listings, and sold/closed within the last 180 days (6 months). Choose 3-5 comparable properties, preferably with the bulk being recently sold listings.
If you want to determine ARV, only look at sold/closed listings within the last 6 months giving preference to the most recently sold. These should be renovated/livable and not fixer-uppers because you want to get the pricing for the subject property if it were renovated.
Hope this helps. Here is a free tool below but you still have to filter the results manually using the tips above. The tool alone is not accurate without applying those tips: https://tools.reikit.com/comps/
Thanks guys ! Just wanted to get an idea of how everyone runs comps. Sounds exactly the same way I do my comps.