My friend Bart Hansen asked me how I get comps when evaluating investment properties. Well, if you aren’t a realtor and don’t have access to MLS data, ask a realtor to give you “sold” data for the last 6 months. You can use a couple of realtors for this but just remember, they will want something out of it. Its good too if you can find a friend who is a realtor that will print out the sold data for you. You can also go to MLS to find only “for sale” data. On average, houses sell for 10% below the asking price so you can factor that into your “for sale” data should you not have any “sold” data available.
By Cary Valerio
Monday, June 9, 2008
How Do You Find Comps on Properties?
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Some local real estate groups may also provide available options to access the MLS listing. In the Houston, TX area; the primary groups are Lifestyles Unlimited and the Rich Club. As a member of Lifestyles (www.luinc.com) you have the option to gain access to the local area MLS database for a monthly fee.
ReplyDeleteSome local real estate groups may also provide available options to access the MLS listing. In the Houston, TX area; the primary groups are Lifestyles Unlimited and the Rich Club. As a member of Lifestyles (www.luinc.com) you have the option to gain access to the local area MLS database for a monthly fee.
ReplyDeleteFor commercial property comps, if you look at rental rates of houses in the same market, of the same size, find the cap rate by calling any commercial broker. Determine the net operating income from the rental rates.
ReplyDelete(Cap rate is annual cash flow divided by the cost). If you only have the annual cash flow, you can then figure out the cost by multiplying. This is a backwards way to do it.