Many investors make decisions on properties without doing their do diligence in regards to real estate comps. Obviously, the more recent a real estate comp is, the more valuable it is to us in terms of establishing market value. It also goes without saying that a property that is listed for a certain price is not a comp. Listen guys, the key is what things have actually sold for, not what they are currently for sale for. After all, the listing price is just someone’s best guess as to what a property will bring.
A comp is an actual sale that shows what a real buyer getting a real loan has paid in that neighborhood. Where you have a good supply of comps, your job on establishing market value is much easier. InvestorComps can provide you with the most current and reliable comps available. Given this information you can make confident moves concerning any property(ies) that you have been researching.
Basically, in using the real estate comps, you will be doing a comparative market analysis. This is just comparing other properties, with recent sales, to the property that you are considering purchasing, or getting ready for sale. Adjustments are made for condition of the property, square footage and features etc. Remember, you will have a stack of recent sales in front of you. You will thus know the square footage, number of bedrooms and baths.
Again, taking advantage of your InvestorComps account, do your proper research, thus using the real estate comps effectively helps to make for sound investment choices. Like I always say you make your profit when you buy! If you buy right!