How to run comps

Im not an appraiser obviously, and, Im not a broker or licensed agent … but here is the way that I run comps on a property.

Here are the criteria:

-Sold within the last 6 months, but preferably within the last 3 months.
-Within 300 + or – square feet of subject property
-Age built range: If my subject is older (which typically 99% of time it is) I eliminate any newer builds in the area . For example, pre 1999 or something like that..
-Within same neighborhood (I like Zillow because I can quickly draw a custom area using major roads as boundaries) This comes with practice in knowing your areas
-Similar property types : I don’t filter for this yet, but take it into consideration when viewing comparables. For example, if my subject property doesn’t have a garage I don’t want to use garage houses, or, bring them down in value if I use them. Sometimes I find much nicer homes in neighborhoods that pull as a comp, and I take that into consideration when all others aren’t that nice.. (etc… you get the point here)

If I want something quick, I use Zillow.

I type in the address, and search for it.
I use the filter options and choose ‘sold’ , add my square feet range, my year builts, and choose SFR’s.
Then I custom draw my area to help eliminate properties that aren’t like mine, or, are in totally different neighborhoods.
Then when I see the comps, I eliminate the highest comp and the lowest. I am looking for comps that are remodeled or are in pretty good shape, because the numbers are based on the ‘after repaired value’ after the subject property is fixed up.
I also take into consideration bed and bath counts.

I hope this helps . How do you run comps?

Happy Investing
-Justin

Looking For Investment Properties?

Fill out the form below to join our "Preferred Property Buyers" list and for local real estate updates too!

Enter Your Information Below To Get Immediate Access

... to our HANDYMAN specials. *These are not on the MLS - Many are below $50k. Available properties on the next page.
  • This field is for validation purposes and should be left unchanged.

Leave a Reply

Your email address will not be published.