Being able to evaluate comps is holding me back more than anything from making a deal

Being able to evaluate comps is holding me back more than anything from making a deal

Rochester, MN · Member since 2014 · 25 posts · 5 votes

I'm really struggling at ascertaining realistic comps for properties I'm looking at. A perfect example is the home I'm looking at right now:

Foreclosed - Sale price of 112k (Previously sold for 154k in '05)

House is in reasonably good shape, the basement needs finishing, it needs a few appliances, and paint throughout. I'm sure there are a million other finer things needed, but that's the overall gist of it. It's in very good condition overall.

I'm trying to find comps to see what a realistic sales price would be for it. Two houses initially stuck out to be on Zillow - Both 1 block over (no big change between the two streets), both sold for 140k. These two homes are pretty similar to the foreclosed one. I felt like I had a bit of a general idea at this point.

Then I look and see a few more houses on the same block that sold for 90-100k.. I look at them and I can see no appreciable differences between those and the ones that sold for 140k. Same street, houses look very similar. There are slight differences between them, but I don't see 40-50k in differences. 

I'm working with a realtor who has been helpful, but I'd rather not run to him every single deal I look at. I'm hoping I can learn to do comps myself so that I can only send over the ones that I think are a good deal and see what he thinks. I'm really struggling with the variations I'm seeing in price, though. Often times I don't even see comps for a house that have sold within the past 6 months, making it even harder.

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  • Curt DavisBusiness Member
    Flipper/Rehabber · Memphis, TN · Member since 2008 · 5k+ posts · 2k+ votes
    12y

    You either need to get your Realtors license or keep running to your Realtor.  If you are using them and they are making commissions when you purchase they should be fine with you asking them for comp opinions. 

    Curt Davis - KAIZEN Realty538 Reviews
  • Residential Real Estate Broker · Clinton, MD · Member since 2008 · 297 posts · 178 votes
    12y

    Hi Jeremy,  I'm a Broker and I can understand (and appreciate) you not wanting to run to your Realtor with every deal but I'm sure he would be more than willing to sit down with you and explain how he looks at comps and give you some ideas on how to evaluate and compare particular properties.   Spending an hour or two with a client to get a better understanding of their needs and helping them help themselves is going to serve the Realtor in the long run.  For those that you think you want to make an offer on, use your Realtor has a double check and always have him run comps.  

    Good luck and happy hunting.  Teresa

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