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Real Estate Comps Guide for Buyers and Flippers

In the world of real estate, understanding property values is crucial. So, we’ll provide a real estate comps guide for buyers and flippers blog post this week.

Real Estate Comps Guide for Buyers and Flippers

Finding Comps Without MLS Access: The MLS Dilemma

The Multiple Listing Service (MLS) is the go-to resource for real estate professionals. It provides a comprehensive database of property listings, ensuring that agents and buyers stay informed about new homes hitting the market. But what if you’re not a licensed real estate agent? Fear not! Here are alternative ways to access valuable information:

Flat Fee MLS Listing Services

If you’re selling your home as a For Sale By Owner (FSBO), consider using a flat fee MLS listing service. These services allow you to list your property on the local MLS without the hefty traditional commissions.

Public Property Records

Check your county’s public property records. Some counties offer online search options, while others may require a visit to the courthouse. These records reveal recent sale prices, helping you gauge the market.

Why Comps Matter

Comparing Apples to Apples in Comps

Comps serve as a benchmark for pricing properties. Whether you’re a seller setting an asking price or a buyer making an offer, understanding comps is essential. But how do you compare properties effectively?

Style Matters: Zillow’s approach to comps sometimes includes different home styles. While this might seem counterintuitive, it caters to both buyers looking to live in the property and investors (like flippers) who might consider alternative styles. So, yes, Zillow’s broad approach is about appealing to a diverse audience.

Mastering Comparables in Real Estate

Mastering real estate comps empowers you to make informed decisions. Whether you’re a buyer, seller, or flipper, understanding the nuances of comps ensures that you navigate the market with confidence.

Let’s delve deeper into the world of real estate comps and explore some common mistakes to avoid:

Common Mistakes When Using Real Estate Comps

  1. Ignoring the Outliers:
    • Outliers refer to properties that sell for remarkably high or low prices. These anomalies can significantly skew your comp analysis.
    • Always investigate outliers to understand the underlying reasons. Perhaps there were unique circumstances (such as distressed sales or bidding wars) that affected the sale price.
    • Ignoring outliers may lead to inaccurate valuation estimates.
  2. Neglecting to Adjust:
    • No two properties are identical. Even seemingly similar homes can have subtle differences that impact their value.
    • When comparing comps, consider adjustments for factors like square footage, condition, upgrades, and amenities.
    • For instance, a fully renovated property should not be directly compared to a fixer-upper without accounting for the differences.
  3. Relying Solely on Automated Tools:
    • While online tools can be convenient, they often lack local knowledge and context.
    • Real estate markets vary by neighborhood, school district, and other localized factors. Automated tools may not capture these nuances.
    • Always supplement automated data with insights from experienced real estate professionals who understand the local market dynamics.
  4. Using Currently Listed Properties as Comps:

Remember, mastering the art of comps involves not only understanding the concept but also applying it effectively. Avoiding these mistakes will help you make informed decisions and navigate the real estate market with confidence! 🏡💼

The Dias Team

Stay tuned for more real estate insights in our upcoming blog posts! 🏡

 

Our blog was assisted or augmented by Copilot. While we strive for accuracy, the content requires research through additional sources.

For reference, here are some links to learn more:

1bing.com2wagnerrealty.com3thecontentauthority.com4workerscompensationexperts.org5ginarte.com

1smartasset.com2wagnerrealty.com3bing.com4thecontentauthority.com5workerscompensationexperts.org6ginarte.com7blog.realeflow.com8mckissock.com