Doing comps

Bird Dogs, Wholesaling
1

One more question…

There are some areas I’m not very familiar with around where I’m seeing properties, so I need to pull some comps to check if the price on a potental deal is around 70% ARV. When I’m pulling the comps, what should I put in the search forms, square feet, number of bedroom/bathrooms, age, lot size…

Should the comps be within 1 mile radius of the potential deal?

and

Should they be properties sold in the last 6 months?

Thanks!

2

It goes without saying that you want properties that are the most similar to your subject, and you also want the most recent data available.

If you can get enough comps in a 1-mile radius and a 6-month window, great. If not, then open up the search a little until you find some things that help.

There’s no one-size-fits-all formula here. It depends on how dense and how often your neighborhood turns over.

3

if the house is in a subdivision, then I limit my comps within that subdivision, otherwise within .25 miles and go from there depending on what I find and the date of the sale.

Look for houses listed by realtors near your house. These realtors pulled compa to determine the list price.

4

What is the best way to get the arv?

5

by pulling the comps and comparing your property and your intended fixes/upgrades to those comps.

6

So if I don’t have access to the MLS, then where to get comps?

Realtors? (I’ll need to pay them for this right? I could see myself asking them for comps many times on properties that turn out to not be deals, but I’ll still need to pay them for doing this right? Seems like it could be too slow also, waiting on them to get back to me.)

Any online resources?

Thanks

7

If your exit strategy includes using a Realtor, just tell that Realtor that s/he will be your Realtor of choice for listings when they come up…but for now you will need the occasional comps. You certainly should not have to pay for these. I am not even sure a Realtor can accept payment for that service.

If there’s a listing on the horizon, then a Realtor should be happy to help. Be fair, though…if you’re never going to use his/her services, don’t try to get something for nothing.

8

I posted a message on my local REI club yahoo group saying that I was looking for a Realtor to help with comps and had an overwhelming response. I made it clear that I was a good 6-9 months from my first deal and was trying to get up to speed. I will choose one and probably take them to lunch. I would suggest doing the same.