Pulling Comps: Am I doing it correctly?
Let me begin by saying I am new to wholealing I try to pull comps as conservatively as possible, as if every house depends on a hard money loan. Here is a general guideline I use, I would love to have some feedback.
1. Try and only go back 6 months if possible to get sold comps in determining ARV. If 6 months back does not get enough solid comps, then do 8 months, then 9 months, then maybe 10 at max. If you have to go further back then that ditch subject property not enough solid comps to show ARV.
2. Need at least 3 solid sold comps
3. Within +/- 20% Sq Footage of subject property at MAX. I prefer within +/- 10% if possible.
4. Within +/- 10 years
5. Same number of bed/bath/garage for comps as subject property if possible. e.g. Subject property is 3/2/2 comps need to be 3/2/2 or 4/2/2. Try and keep same exterior as subject property in comps as well ie. if subj property is frame ext, pick frame comps.
6. Geographic area for pulling comps, stay within confines of major roads as illustrated below.
7. Once have solid Sold comps, get the median $ per sq ft price and multiply it by the subject properties sq ft. For instance lets say the sold comps based on the above criteria ( 10 years, 20% sq ft etc) show a average price of $63.00 per sq ft and your subject property is 1500 sq ft. You take 1500 x 63.00 to get an estimated ARV of $94,500
Thanks for your feedback!