Question:

[TakSun]

Excuse me for my lack of knowledge but what does the word "comps" mean ?

Thank you

[tedjr]

Howdy TakSun:

What other houses similar are selling for in the neighborhood. It is short for comparable.

[TakSun]

Thank you Tedjr

[IndyBruce]

Just make sure that when you get comps, that you get comps on sold homes. Not the asking price.

[TakSun]

You mean not on homes that are already on the market an up for sale ?

Thanks IndyBruce

TakSun

[kdhastedt]

That's exactly what Bruce means.  Listings are just someone THINKS a property is worth or what they'd LIKE to get...

Sold comps tell you what the property was worth.  A property is worth what a willing and able buyer will pay for it.  Period.  Additionally, valid comps should be no more than 6 months old...year old comps may be completely invalid.

Keith

[TakSun]

Thank alot for that info...that makes it more clear to me and even the part about the time length of when a house was sold Im sure makes a big difference.

Good looking out Keith

[TakSun]

I understand that there are a few ways to do comps on some property. Is there any sources that you all would recommend as far as doing a comp on a home ?

Any info is appreciated.

Thanks

[kdhastedt]

From a friendly/qualified appraiser.

Keith

[TakSun]

I know but is there a way I could see for myself as well ?I hear that sometimes even appraisers could be a little off with their information.

[tedjr]

Howdy Taksun:

The sales data is raw data mostly from the MLS . The appraiser can not change this unless he is a crook.  If there is a question about the appraiser it may be in the comparison of the comps to the subject property when there are differences.  Houses that are in the same neighborhood by the same builder and age and footage would be very easy to compare with little or no room for error.

Not all property sold goes thru the MLS but most residential sales do. To get other comps you could visit the court house and find deeds that are recorded and call the folks involved and get the sales price. Texas is a non disclosure state and the buyers and sellers do not have to give out the details of the sale to the authorities. This process is very tedious with lots of calls and dead ends.

[TakSun]

Oh i understand....I didnt know that. In ohio we actually have a website that has every listers home and deed information possible. But I didnt no that some states are not required to give out that kind of info.

Thanks alot for the info...every little bit is valuable

TakSun

[TakSun]

Ok here is another one ...I feel so undeducated...but anyway..

Do you think condos are good to invest in ?

Any infor is greatly appreciated ...

Thanks

[realtorinatl]

If you are looking into investing in a condo you must first check with them regarding rentals and what their rules are. I sell new townhomes and they are a HOT item to rent!

[tedjr]

Howdy Taksun:

On a whole they are not so good as far as cash flow because of the HOA fees which usually includes the water and trash. This is hard to pass on to the tenant.

As far as appreciation it is anybodies guess. I bought one at  $17K that I could not give away for $22K 5 years later. Timing is everything too. I bought in a really bad market and tried to sell in a so so market. Just a few years later they were selling for $30K.