Analyzing Properties Without MLS Access?

Question

Hi everyone!My question is about analyzing properties. For those people who don't have access to the MLS, what is your favorite resource for pulling comps? How often are the sale prices accurate? I've been using Redfin and I understand these listing tell you very little about the property or the transaction process. I will be obtaining my real estate license soon, but for now I'm trying to gain as much experience possible by researching areas and analyzing potential investments, maybe even negotiating my first deal if I'm successful. Thanks!

David Dachtera · Answer

Zillow's sold prices come directly from their mining of the publicly-available data. If it's inaccurate, it would be impossible for anyone to do a proper comp. or appraisal, even if they went directly to the court house to get the info. That's where Zillow gets it.

Greg H. · Answer

For Texas and any other non-disclosure state sites such as Zillow are useless ! The only way to get true comps in Texas is from the MLS. Accurate sold data can be found in no other place as sales are not reported

Aaron Montague · Answer

@Richard CastleGrab yourself an agent or 2. They have access PLUS the good ones are going to know their target markets like the back of their hands.You can also find "recently sold" data on realtor.com and several other sites.The best place to practice deal making is here on BP. Bring forth your deals and we'll give you our opinions. Personally I'd set a real estate goal on two fronts: ROI and monthly cash flow. I use 15% AND $125/door/month ($250 for SFH) as the baseline for my deals.

Russell Brazil · Answer

@Richard Castle Redfin is probably the best available source for you. They are a brokerage, so the information pushed to their website is pretty accurate. Id say at least 97% of the information is accurate. Just be sure when you are pulling comps that you really know what you are doing. I often run into house flippers in my area who overprice their flips considerably because they do not know how to properly comp the property.

Ian Hoover · Answer

Zillow is a joke.Redfin or Realtor.com is your best bet outside of using an agent, I am an agent and I pull comps for my clients all the time.A good agent is a must have for any investor, you need one who can help you find deals and analyze them as well.Good luck!

Richard Castle · Answer

@Russell Brazil Thanks for your input Russell. What seems to be the biggest issue when you encounter overpriced flips? Are the house flippers not comparing properties that have the same characteristics as their flip? Or are there other factors that cause them to overprice their flips? @Corey Melkonian Hey Corey thanks for jumping in to the conversation! I planned on connecting with an investor agent in my area. I do have one question. Do you use the agent that refers you to a deal to list the property as a thank you for the lead, or is there anything that would prevent you from listing the deal yourself? @Aaron Montague Thanks for the tips Aaron! I’ve yet to decide on my niche, but the more I research the better multi-family homes are looking for long term passive income. Your criteria also seem like a good metric to set for investing in SFH or MFH. I think if I could accomplish those numbers I’d definitely be on the right track!@Scott Sewell Thanks for the warm welcome! This place is finally starting to feel like home. You definitely helped answer some of my questions. It would appear that Texas is a non-disclosure state as well. Does your agent typically have access to past sale prices? I’ve learned how to use the county appraisal district website to mine for information, but it definitely leaves some gaps. Specifically, it shows deed history (last 3 transactions) but no sales prices. I’ve also started using my online county record search to help gather info. Thanks for the suggestion!I don’t really feel any intimidation at this point. I actually feel excited. One of things that really drew me to real estate was the research part. I’m an info junkie and I love collecting information, running numbers and doing research. I just have to figure out my process for how to analyze properties thoroughly and efficiently. Thanks for all the great info Scott!

Scott Sewell · Answer

@Richard Castle,Hello Richard and WELCOME TO THE SITE! As stated above this is a great place for feed back once you do your analysis (among many, many, other things).To answer your initial question, we like to have an agent pull comps for a property, but only after we've done some research into the property first and we're ready to do a walk through and pursue it further, or we just ask for all the sales for a specific area and time period. We live in a "non-disclosure" state (AK), and past sale prices are not in the public records, however much critical information is: Lot size, square footage, ZONING (one of the most important IMO), # of beds & baths, year built, date of last deed change, city/county assessed value (do not mistake this for market value), taxes, and other info is (here) readily available on city/county websites. I prefer to use (their) mapping interfaces, and then "dig down" into the information from there. The state recording office (here) records mortgages (from which you can estimate the last sales price), liens, and other encumbrances (easements, etc.) or agreements, which can give you a picture of the sellers position (and ability to negotiate on or) in a property, as well as issues that might be detrimental or beneficial to your intended use.Once we have this info, if we're still interested, we'll call our agent(s) and ask them to make an appt. to see the property AND pull comps from the last six-twelve months, unless we know the area VERY well.I know this may seem intimidating when you're starting out, but we can do everything stated above in less than an hour and,... we like going into properties knowing (as much as or) more than anyone else.

Corey Melkonian · Answer

I think an experienced agent would work best for you, especially and investor agent. That's what I do in Mass. My best leads are from other agents and I use them on the list side after the property in complete and ready to get back on the market.

Richard Castle · Answer

@David Dachtera Thanks for your input David! Have you found the sold prices on Zillow to be accurate?

Richard Castle · Answer

@Nick Britton I have considered seeking an experienced agent. One question is would I be better off looking for someone who is an investor and agent? One of my potential strategies is to use conventional financing like an FHA loan and do a live in flip. I plan on purchasing an investment property within the next 12 months. Does your typical real estate agent work with investors?