COMPS 101? Inconsistent Market Value for Properties

[Dexter M.]

Let me start off by saying I’m relatively new to this, so forgive me. Here’s where I stand…

I’m a newbie investor initially focused primarily in Wholesaling (I know… you heard that a million times). I have spent a good amount of time understanding and practicing all the different stages of Wholesaling. Thanks to hundreds if not thousands of Forum feeds, majority if not all of the Podcasts, and a few books I have grasped a good understanding of almost all the stages. Except one, COMPS! I have already started out Driving-for-Dollars but have yet to close on my first deal. The last stage I would like to get more familiar with before I send out my first Direct Mail Campaign is knowing a properties proper market value before I start negotiating with a motivated seller. I have to be able narrow down a ball park figure that I’m comfortable with before negotiating. And that’s where I’m stuck at.

Ok so being a newbie investor more times than not you don't have access to MLS and I don't. So until I get my license and get to that point I have to rely on the many online Comparable sites available. The problem I'm having is that each one seems to give me a completely different figure. I understand that I won't get the exact figure on each site but sometimes the numbers aren't even close. Below is a perfect example of what I mean (This house is not on the Market For Sale so for Privacy purposes I won't display the street number)

XXXX Wynfield Dr Jonesboro, Georgia 30238

XXXX Wynfield DrThis is a Single-Family Home located at XXXX Wynfield Drive, Jonesboro GA. XXXX Wynfield Dr has 3 beds, 2 baths, and approximately 1,770 square feet. The property was built in 2000. XXXX Wynfield Dr is in the 30238 ZIP code in Jonesboro, GA. The average list price for ZIP code 30238 is $106,223.

Zillow- $75,039 (Zestimate)

Eppraisal- $92,717*Market Value

Redfin- $63,900 Now Redfin has a Home Value Tool that lets you average four other similar properties recently sold within the neighborhood and that number is the average

Property Shark- $ 43,338 *Market Value

Trulia- $76,893 *Market Value

Now I plan on using the 70% Rule as much as I can when negotiating but here I have figures from $43k- $93k. That's a 50k difference. Am I using the wrong Comp Sites? Am I doing something wrong? Is there a more accurate way of finding home values without having MLS access? What would you do differently?

I need your help BP family any advice is better than none…

[Mary B.]

Don't use 'zestimate'. 

realtors.com is my favorite and its updated frequently.

Make sure the properties that you are using to compare to the subject house in Jonesboro GA is within a maximum of 1 mile radius; its should be 3br 2ba and as close to 1770sq ft of living space as possible(since no two properties are exact). The comparables should have sold within the last 90days (going by quarter as often prices change per quarter). Ocassionally you may have to add another 30 days to the mix if sales aren't as frequent in that neighborhood. Don't forget to compare apples with apples, i.e. if its a SF rancher then find other SF ranchers to compare it to(whether its sold or rental comps). Thats the general guide for getting CMA(comparable marketing analysis) aka COMPS.

Kudos,

Mary