A better approach to finding comps

[Stephen Barton]

So I just wanted to share a little of my experience with the BP community. I am doing wholesale deals in Indianapolis and I am always running comps literally on a daily basis. I have learned a very important aspect to determining values for properties. When you are looking in your 1/4 of a mile and within 6 mo parameters you should also look up (from tax records) what subdivision the subject property is located. I mean just 2 days ago I was looking up property values and if you just did the 1/4 mi radius the comps we like 30k. Then, when I used the subdivision as my only area for comps (I had to go back to a year to find enough) then I saw that this specific neighborhood has a completely different style and price of house. Like 2 times what the neighborhoods around the subject property's subdivision had.

This is something that my mentor has been showing me lately and I think it has been a revelation for me in estimating my offers on deals. Please just take this for what it is worth I am not an expert I simply just learn as I go and this is what works for me-better than just drawing a radius around my subject property. Hope this helps someone out there!

[Mitch Coluzzi]

Subdivisions help but...  Style of house is huge in some areas but not all... A bungalow vs a 2 story, given the same neighborhood, sq ft, amenities, bedrooms, and baths can hypothetically be 125% higher in value just because of historic charm.    Same with an all brick home, property on one side of the highway vs the other, in a certain school district, a special neighborhood association, or top of the hill vs bottom... These are all important factors in making a usable comparable search.  

You really need to understand your markets beyond the "subdivision" and "draw radius" tool.  Before you start comparing, pull up a google map and just look for 30 seconds... what are the natural indicators (major roads, intersections, etc); take a quick look at topography, is there a ditch or a river that runs in a certain spot?

These little things can help you pick out outliers that need adjustment to be used as a comparable.  From a quick analysis standpoint, IE: this house is worth between 70-90k these details are not as important but when you are trying to really hone in... very important

Hopefully there is something usable above.  Best of luck investing!