DIY Automated Property Evaluation

Comps, comps, COMPS, everyone wants comps! Realtors, brokers, investors, rehab'ers, heck John and Susie moving into their first home have even got this one down! But who has the time for all that? And it's not like you can just blast a request at a Realtor every time you want to evaluate a potential investment property. So what's a girl to do? I'll tell you what she's to do!

If comps are still your best friend, as they are to me, there are a few ways to somewhat automate the process. I say somewhat because the following method does take some work on the front end.

But if done correctly and thoroughly, this method can not only save you a ton of time in evaluating your next rental, but also beats some of the questionable technologies out there that require you to "trust me, my company's technology is right". Pure and simple, this is the best of both world, providing some of the automation that the big data companies offer, as well as the integrity of real sales data.

Of course the MLS is EXTREMELY helpful in this endeavor, but really it's not essential. Search 12 months's worth of transactions for just an individual census tract. Put this data into a basic excel (or libreoffice calc if you are oppositionally defiant like me) spreadsheet. You don't need hundreds of columns of data or anything fancy - perhaps a tract #, block #, Bed, Bath, Sqft, and Price Sold. Insert those listed as column headers, and then save your spreadsheet "as template". That way, you can upload in bulk without having to point and click each property, which is as painful as it is annoying.

Once you do that, "sort by" and use the header "Beds". Make sure the spreadsheet keeps all the data from each property together when you do this (another reason to choose Libre, 1 click). After that, your properties should be in some kind of order with all the 4 bed properties listed, then all the 3's, etc. Go to the line of the last 4 bed property. To the right of that "Sqft" column, insert the formula to find the average of a range of cells (google, it will be very easy).

Apply this to the 3 beds, 2 beds, etc. Then apply the entire concept to the other tracts in your market. Plot them on google earth (or googlemaps as I figured out how to do finally). Overlay the census tracts in googleearth. Now every time you have a new subject property, plot it on your super awesome interactive map. Oh, I see 123 Bobs Avenue is within tract #____, Looks like it's going for 88% fair market value, let's offer 90% asking price and see if we can't snag this thing for less than 80% and get some instant equity! This is an awesome strategy for rentals.