Analyzing Comps - How do you do this

[verbatim]

Analyzing Comps

I have been pulling comps of free internet sites [ domania, etc] & I know they are not 100% accurate but what if they were. What are the analyzing standards you all use when pulling comps?

Example: Say you have a 1500 ft Brick Veneer home with 6/3/2 [6 total rooms, 3 bedrooms, 2 baths] & a 2 car carport.

You find 15 comps in the neighborhood, some have 8/4/2 , some 7/3/2, & others 6/3/2. The homes are made of brick, wood, aluminum, vinyl, etc. Some prices are extremely low because rehabbers purchased them[$20,000]. Others are around $90,000.

How do i determine which houses to use in the comp & not to use? Is there a certain # of homes i should use?[ie the top five]  Do they have to be in the same subdivision?

How do I figure out what the 1500 sqft home will sell for?
And after I determine a price, how do I justify it when a rehabber I attempt to flip it to says “ I pulled comps & found 3 homes sold for $20,000- how do I know mine wont sell for 20k?”

I intend to flip to investors and need to know as much as possible about this topic to present the advantage of the deal in the most professional manner.

Also, if you rehab how would you like a deal presented to you?

Please help me.

[Admin]

verbatim,
Much of it is subjective as the true value is merely what someone would be willing to pay.  That said, I like as many features as possible to be comparable.

I look at age, size, construction, proximity, beds and baths, number of houses for sale in the neighborhood, days on market, whether or not there's new construction nearby and if the builders are offering huge incentives to new buyers.  I take into consideration the curb appeal, floorplan, and whether or not the sellers gave the buyers some large concessions that are included in the price.  It's not a science and I'm not always able to gather this info.

If you're farming only a few areas, you'll soon know the values just by a drive-by.  I get some phone calls on houses that I know within a thousand or two immediately based on area and size.  Others are an educated guessing game and I'll usually get a range and assume the average.

A decent rehabber will know a deal if you bring it so that's not an issue.  If you were calling me, I mainly want to know the following:

size
beds and baths
needed repairs and estimate if you're willing
after-repaired value
asking price

If you're way off on these or embellish to make it look like a better deal, I typically won't bother to call you back after the second time.  In my opinion it's much better to make very little or break-even and get a new buyer for your list than it is to try and not leave enough meat on the bone for the end user.

Just my thoughts...

[tedjr]

I am looking for a rehab project or two. I have a great source of funds for me now and will look at a deal. The money is expensive and the market poor. I have been trying to sell a house in Oak Hill a year. Keep droping price and still no offers. I need a home run to offset this strike out.

Thank you,

Ted P. Stokely Jr
11505 Sw Oaks
Austin, Texas  78737

512-301-9171 home
512-587-6177 mobile