The value of every property is relative depending on its condition, surrounding circumstances and location. It is affected by various factors such as the type or the property, date of establishment, construction type, foundation and lot description. These variables help the investors to determine a market-competitive price that is so important for negotiating to buy and sell the subject property.
Here are the steps on how to run real estate comps:
Step 1: Research
You can search for recently-sold properties in listings as a basis for doing your comps. There are available listing sites such as Realtor.com and Zillow that can help you look for property comparables. You can also locate deals and other comparable properties using web mapping services. After researching, you can filter your results based on your desired statistics and needed information.
Step 2: Use computer vision and automation tools
Since the industrial revolution, technology has created a huge impact in modernization and development. This is also true in real estate investing, as property assessment can now be done faster by using artificial intelligence. There are applications such as Redfin and Fox.ai that will help you to get a score-based analysis. However, your deal-finding experience can be done better if you will compliment these applications with the right automation tools.
Step 3: Make a Property Valuation
After doing research and using automation tools, the next step that you must do is to compile and collate the information you get in the comps. The differences and similarities of the comps must be correctly assessed to arrive at a concise property valuation.
In Real Estate IQ, we have Deal Finding Suite with MLS Deal Finder. In using this tool, we can provide you with thousands of valuations, search listed properties, and get real-time email notifications as soon as discounted houses hit the market! Feel free to check our tools here. You may also visit our hot-trends blogs and learn the latest news about real estate investing.
Steve Liang is the Co-founder and CEO of Real Estate IQ. He is a national speaker and a member of the Real Estate Advisory Board of North Lake College. Some of his achievements include being the REIQ’s Market Leader in Real Estate Intelligence Augmentation; co-founder of Real Estate Deal Finders Meetup, which hosts over 20 monthly real estate networking and deal-finding training in Texas; and a goal-setter and motivational speaker that helps entrepreneurs to unleash their potential and achieve their goals. Steve has spent most of his career practicing leadership, management, marketing and strategy execution.
The blog articles are intended for educational and informational purposes only. Nothing in the content is intended as legal or financial advice.