Real estate comparables reveal the true market value of a property.
Knowing the value of a property places you in a position of power
and you'll never overpay. You'll make aggressive offers and negotiate like a pro.
Below are 4 sites that provide real estate comparables.
Get the complete picture about the property before you buy.
Use multiple sources that track current sales.
Determine property value without leaving your desk. With access to online comparables even investing outside your area is possible. Compare similar properties and see the sales history. Use Google earth to check out the neighborhood and exterior of the property.
How do investors know the right price to offer for a property?
First they find comparable sales for that property; sales that have taken place in the last 30 days. Only include sold properties and only use the same kind of property, take into consideration the age, amount of bedrooms, baths, garage and sq.ft. and neighborhoods need to look the same. The low end of that list is the price of an ugly house, the pretty properties represent the property value after it is repaired (ARV) and looking good.
The big math is ARV - repairs = the maximum allowable offer.
It looks simple but it can be a complicated calculation and it is vital to get it right. Too low and other investors will out bid you. Too high and your profit margin will be low.
Eliminate the fear of big math and mistakes using the Rehabvaluator software.
It automatically calculates high and low offers into an easy to read report.
So you can make all of your investing decisions with confidence.
It is especially easy to use, just a few buttons to push
to get the report and a color coded map with all the info.
Not only do you get to see the comps for the property that you're interested in buying. You'll also see cash buyers, private note and regular retail sales for the area.
And since it's an online system, you can access it all the time.
MLS (Multiple Listing service) We love comps from the MLS but you need to go through a Realtor for each area and sometimes that's inconvenient. It's best to form relationships with a few Realtors. When they know that you're a serious investor they'll give you access to the MLS so you can run comps without eating up their time.
The drawback is, the MLS comps are not made up of all sales in the county, they're only made up of the properties that have been sold through a Realtor. The MLS system is updated when the listing agent changes the property status to sold and enters the price. The agent usually has 30 days to update the status.
Realtor.com You'll find a basic overview of the property and a list of schools and neighborhood descriptions. It provides both high and low estimated values of the property. Realtor.com generates its information from the MLS but it contains limited information and is updated slowly. It's an easy alternative if you can not access full real estate comparables directly from the MLS.
Netronline.com Access every property and tax appraiser's office across the US. See assessed values, comparable sales and property taxes. The county also provides updated info, the description, square footage, and amenities of the property. Generally, sales appear in county records 15 days after the closing. Also included are sales that have been quit claimed and sales for nominal amounts. Finally a government agency is helpful by providing accurate info.
Stop wasting time and giving yourself headaches trying to find real estate comparables and calculating offers, get the Rehabvaluator software and invest with confidence and ease.