Market Analysis Step 1 Distressed/ Retail Avg Home Sale Price

Step 1 for analyzing a potential area to fix and flip is to look at the ratio between Distressed over Retail Avg home sales price. 

Average Sales Price of Distressed / Average Sales Price of Retail = Ratio

I recently tried to find this data on the MLS but ran into some road blocks. Heres how to setup your MLS Search fields so that you can access the data needed to perform this ratio. 

1) Login to MLS

2) Find your Search Function

3) Ensure that the search field "Short Sale/ Foreclosed/Court Approved (closed Only)" and :Close Date" are selected. If not click in the "Add/Remove Fields" button and move search field over to the currently selected field. 

4) Select Status as Closed

5) input Search area

6) Select Closed date window to range that you are looking for

7) Select Field "Short Sales/Foreclosure/ Court Approved"

6) Click View results

7) Change "1 Line Summary" to "CMA Summary"

8) Scroll to bottom to see summary box. 

This will give you the Avg Distressed Property Sales Price. 

To get Average Retail home Price.

1) Go back to the search menu

2) Select status as "Closed" 

3) Input Search Area same as before

4) input Date Range same as before

5) Select Not Applicable under the "Short Sales/Foreclosure/ Court Approved" tab

6) Click View results

7) Change "1 Line Summary" to "CMA Summary"

8) Scroll to bottom to see summary box. 

Now that you have averages for both distressed and retail home prices you can divide 

AVG. Distressed / AVG. Retail = Ratio

Prime flipping areas have a ratio of distressed homes selling below 50% of retail homes on the market.