How to Analyze Comparable Sales

It’s Viewer Question Friday and we had a very good question from Janiro…

“When finding 3 properties does the structure have to be the same, for instance when I researched my subject property on zillow the comparable properties were within the one mile radius, they had similar square footage as well as the same amount of bedrooms and bathrooms.  However, I noticed that my property was wood with a 2 car detached garage, but the other properties were all brick with attached garages. Is that ok or should I find more properties?”

There are Four Main items you need to consider when developing good comparable sales, they include…

1. Make sure you are comparing similar homes in square footage and bed and baths.
2. Try to find homes of similar quality so an unupdated 1970’s home is not the same as a home across the street that was recently remodeled.
3. Try to find 3 homes within a mile of your property with similar neighborhoods and sold in the last 6 months.
4. Only ever compare sold homes and not homes listed for sale.

Finding and Analyzing Deals

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