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How To Comp Your Property Like A Pro

In Real Estate Investment by JWI Properties Comments


Josh Williams Explains…

How To Comp Your Property Like A Pro

In real estate investing it is crucial that you know your numbers, and know how to effectively comp your properties. What is a comp? A comp is a comparable property to your subject property.

It is preferable that you find and compare at least 3 of the best matches for your property to help understand your property’s current market value. These are also sometimes referred to as CMA’s (comparative market analysis) or even called BPO’s (broker price opinion).

The sites that you can use to comp your properties include Zillow, Redfin, and Trulia. We use Trulia to check crime ratings for properties, we will be using Zillow in the video for this example.

When comping your property you want your comparable properties to meet 3 main qualifications…

  • Connector.

    They need to be within a quarter mile from your subject property.

    Ideally within a quarter mile.

  • Connector.

    The properties need to have sold within the last 6 months.

    The more recent it sold, the better comp it is.

  • Connector.

    That they're oranges being compared to oranges.

    Similar features & square footage.

You want to find at least 3 properties that are similar in distance, size, and features that have sold within the last 6 months to compare to your subject property. The only way to know the true market value of your property is to comp it, and the ability to do this effectively is one thing in this industry that separates the amateurs from the pros!

In this installment of Josh Williams Explains… He takes you step by step through his actual process and teaches you how to comp your property like a pro!

Share this Post


Josh Williams Explains…

How To Comp Your Property Like A Pro

In real estate investing it is crucial that you know your numbers, and know how to effectively comp your properties. What is a comp? A comp is a comparable property to your subject property.

It is preferable that you find and compare at least 3 of the best matches for your property to help understand your property’s current market value. These are also sometimes referred to as CMA’s (comparative market analysis) or even called BPO’s (broker price opinion).

The sites that you can use to comp your properties include Zillow, Redfin, and Trulia. We use Trulia to check crime ratings for properties, we will be using Zillow in the video for this example.

When comping your property you want your comparable properties to meet 3 main qualifications…

  • Connector.

    They need to be within a quarter mile from your subject property.

    Ideally within a quarter mile.

  • Connector.

    The properties need to have sold within the last 6 months.

    The more recent it sold, the better comp it is.

  • Connector.

    That they're oranges being compared to oranges.

    Similar features & square footage.

You want to find at least 3 properties that are similar in distance, size, and features that have sold within the last 6 months to compare to your subject property. The only way to know the true market value of your property is to comp it, and the ability to do this effectively is one thing in this industry that separates the amateurs from the pros!

In this installment of Josh Williams Explains… He takes you step by step through his actual process and teaches you how to comp your property like a pro!

Share this Post