Comps Comps Comps...

How do you know to use and not to use a comp? I have a list from my agent, but I am trying to compare to a property that is 3/3 and 1496 sq. ft. I have couple properties that are in diff. subdivisions and worth a bit more. I don’t want to get my hopes up and expect a higher price and lie to myself. Also I have found a 4/2 property or 3/2 property, how do I know the difference of the properties compared to the one I am looking at. So, I will have to either use a diff. subdivision and/or bed/baths.

I am stuck.

Thank you

Look for the closest square footage to yours and also the number of bedroom/baths
I know that sounds pretty basic but it is really pretty simple the way they do it. The just look for similar properties in size and features within, usually a 3 mile radius

When working with a Realtor, be spacific as to what you want. Only use sold properties. Get between five and twenty comps for each property. Beds, baths, and square footage are the most important factors to me. The more comps that you have, the more spacific the details are that you can check. Try to stay in the same subdivision or neighborhood. In my area a subdivision change can make a big differance in value. Also, check to see if the comp is a distressed property. There are so many REO's that are being sold right now, that they might skew the value. I like to have at least 5 good comps to establish value. If the Realtor needs to expand the area or other criteria to find at least 5 comps, have them do it.

I hope this helps, Al

Any other ways (even paying sites) to find comps, instead of always depending on a realtor? I don't care if I have to pay weekly or monthly, as long as it's a good site and accurate. I don't like waiting for my realtor, sometimes she takes a bit longer than I want.

Do a web search for "real estate comps" or "home values". There are many sights that offer comped values. These are not as accurate as the comps that a real estate agent can supply, but they will give you a good idea of value.

Al

hi you may want to try zillow.com. It will give you comps for the last properties sold near your address with features similar to yours.

New to the site just looking around looks great on your Audio 1 you say go to with site and get free Bounses. I can't find them Bruce

look under student resources. You will find calculators, form and docs, Deans special report and etc.

When you ask for comparables, the agent should give your properties that have sold within 3 - 6 months, within 1/4 - 1/2 mile from target property with the same building style, # of beds & baths and square footage. This is a very easy task as the MLS is set up to click on any feature and provide the results within a minute. Maybe you should get a more seasoned agent.

some of the TOP sites that i use(yes, thier accurate), this is my favorite: WWW.HOMESANDLAND.COM, why? you ask,it's 4 sites in 1, when you plug in the properties address it will give you values from: www.zillow.com, www.homegain.com, www.eppraisal.com, and www.trulia.com, Another TOP site is: WWW.REALQUEST.COM, excellent site for an approx appraisal and has market trends and comps from recently sold houses.
WWW.HOUSEFRONT.COM, not bad either, not as good as the others, but worth a check, WWW.CYBERHOMES.COM, also has COMPS and charts, maps, graphs

Disclosure: just so everyone knows: i am not promoting ANY web site of ANY kind, just trying to help answer a question in a previous post.

P.S. now you know my seacret web sites for quick "approximation appraisals"

Thanks for sharing your "secrets" with the rest of us... YOU ROCK!

I've got a great RE Agent (me), who gives me comps whenever I need, but these sites will be handy.

Thanks, Al

Sully,

Thanks for revealing your secrets. Don't worry, I won't tell anyone, no one else will know. ;o)

is to do your research. I could go online and come up with comps, but what seperate reality from the facts! The website may provide you with general comps based on the area code, but ther fact of the matter is, the comps may never be the same. So i suggest the best way to find comps in your own area is find the families who reasonly moved in that particular neighborhood in the last six months and ask questions. Asked them how much they paid for their homes, how many bedrooms, bath, sq ft, what was the appraised value, etc, etc.

The Realtor is a good resouces, but they may not always want to help you and give you what you need. You go out there and acquire the informaiton yourself! Good luck and happy investing!

LL

Do be very careful when using websites on the internet to find the value of properties.

An example: When working on a short sale I received comparables from a Realtor and had an appraiser appraise the property. The values came to $115,000 and $117,000 respectively. When working with the bank they would not accept anything less than $170,000. Curious about how they came up with the value of the property I looked up the value of the home on the internet and found that I was being told a value of $170,000. They bank never denied this but would not accept my offer. Had I have gone off the internet "appraisal” I would have lost $40,000. Working with a competent Realtor is worth not losing $40,000.

GOOD CALL!!!

provided are not always correct and can potentially be off by thousands, however, it is a good way to get an "IDEA" of what the property is worth, it's obvious that you want to make your FINAL desion based off of COMPS from 6 months ago or less and within a half mile or less.

I like that, Al.
Question for you. How do you come up with the comps? Is it just your area you have access to, or is it the whole MLS system? I'm just wondering if I could use YOU from here? for comps, that is.

Rina

We have a great system here in Phoenix area. I can get a precalculated value based on square footage (no math required), with one push of the button. Or I can get a very detailed comparison, using whatever criteria I choose. I can choose whatever time period, subdivision, elementary school, zip code, house size, lot size, and features inside or out. The CMA (comparitive market analysis) that I put together shows Listing price, Sales price, Days on market, square footage, price per sq. ft, lot size, and number of beds and baths. I'm sorry, I can only search MLS data in my area. If you ever decide to invest in the Phoenix area, I would be glad to help.

Al

I'll leave Phoenix to you and Elena (might come down to see you guys, though), but I'd love for my realtor to have that kind of network. Or is it just a special software? (hope that's not an ignorant question. lol)

Rina

I don't know what other areas have. I assume that because we have such a large agent base, we probably can spend more for our system. I know that not everyone has the same stuff.

Al

You don't know what the system is called, do you?

How wide of a range do you have there? I mean, how big of a circle around Phoenix?

Rina

The system we have now is brand new. It is called FLEXMLS. We have listings from all over the state, but not all, out of area, agents show their listings on our site. I don't know how many chapters of The Association of Realtors subscribe to this site. There are many chapters just in the Phoenix area. The NAR (National Association O Realtors) is broken up into state chapters, and the state chapters are broken up into local chapters. I am a member of the National Association, The State of Arizona Association, and the Phoenix Association (and get to pay annual dues to all of them). Does that make any sense?

Al

Al, thank you for all the info. I'm going to tell my realtor about your system. Who knows, MAYBE we have something like it in WI or MN.

Elena's got the best in Phoenix with you as her agent! AND sounds like you've really got an edge for the investor side of YOU! Good luck, Al, and thanks for your patience.

God bless,
Rina

no way!?...Al is E's agent?

Secret agent man.
See confession in this thread. LOL
http://www.deangraziosi.com/node/8470

No, she's proud to say. It's not a secret. Kind of wish Al was MY agent, but I ain't movin' to Phoenix!

Rina

whew....no way i'm dealing with that rediculous 105 degree HEAT, i LOVE WINTER so, i guess i'm never moving to phoenix? Right Rina?

I love the snow, but NOT the extreme cold (CAN be -40 degrees here in January). BUT I don't think I could stand 105 degrees either. Maybe I need 2 RE markets! Summer and Winter. Hey, great idea Sully! (I'll let you have the credit. heehee)

OK, Al & Lena, line me up a winter home down there. LOL

Rina

P.S. Very sorry for the thread detour.

I called my local MLS and asked them how I can gain access to the MLS to look up comps and they sent me all the paperwork and they want $250 to do the paperwork and then the monthly fee of $25.00 to keep my MLS activated.
I will only have limited access. They said I won't have access to new listings or exclusive listings.

Maybe you all can check with your local MLS to see if you can also gain access.

When you're an agent, you have the cost involved with the MLS as well. For some people it's worth the cost, especially if you are an agent. I would always recommend getting your own buyers agent to work with and have them run the comps for you. In real estate the only people who pay commissions are the sellers. To use an agent and give you the true comps, is a freebie.