Pulling Comps

[Account Closed]

Hello Everyone! I'm new here to BP and wholesaler. I have several houses on my radar and are needing to pull comps. I currently watch the housing market via Realtor.com and Zillow.com on my phone. Are these good places to pull comps are is there a better way/place?

[Sean OToole]

Having access to the MLS is a key source of comps - it is useful because it doesn't only show what is listed, like the sites you mention, but also what is pending, expired, etc. which all provide clues as to the state of the market.

Second, you want a source of public record comps, as more and more deals are happening "off-mls", and these too provide important insight into the state of the market. Ideally that source will tell you the type of comp - REO, shortsale, flip, etc.

Finding the best comps is more art then science. It also depends a bit on your goals.

Two keys in my mind:

1. Understanding comps from a buyers perspective - at this level you really need to get off the computer and go look at houses. Any impression you have from comps out of the computer will be easily trumped by the knowledge of a buyer who is actually out looking at houses. Not getting in the field enough is a key investor mistake imho. 

2. Understanding the comps from an appraisers perspective. Even with all the talk of cash deals, the majority of sales (60-70%) require financing. Lots of pressure on appraisers to be conservative. Best to understand what comps they are most likely to use - ie the most obvious and easiest to defend. Requires high art to convince them to use your comps.