Research properties and their owners, compile lists, and more.
A multiple-listing service comparable tool.
List your properties with Propelio Realty for incredible savings.
If you have an underwater property, our experts can help.
A channel that gives daily updated archive of our live video.
Get to know Propelio better – explore our story and mission.
Shows MLS coverage and broker transactions in your state.
Share Propelio with friends and family to earn exciting rewards
Happy Wednesday, everyone! Today we’re diving into real estate. Unfortunately, Grant is out with the flu, but we have Daniel Moore stepping in with a segment called “Daniel Does It.” Our focus today is property evaluation, particularly on comparable sales or “comps.” Knowing how to accurately evaluate properties is crucial in real estate, and getting the After Repair Value (ARV) right can make or break your investment.
What is a comparable market analysis (CMA)? A CMA is an opinion or estimate of the most probable price in a competitive and open market. It’s critical to understand that “opinion” or “estimate” means there can be varying interpretations, which is why having solid data is crucial.
When someone asks, “What’s the comps?” they’re referring to comparable sales data. This data includes CMAs and is essential for determining a property’s value. Misinterpreting this data can lead to costly mistakes.
Imagine you’re at a networking event, and someone asks, “What are the comps?” You can explain that you’re looking at recently sold properties within the same subdivision, similar in size, age, and features like beds, baths, and garage spaces.
The most common errors in evaluating properties include:
Sometimes the highest and best use of a property isn’t immediately obvious. For example, a two-bed house in a three-bed neighborhood might need a renovation to add a third bedroom to reach its full potential.
Pay attention to days on market (DOM). If a neighborhood has long DOM, it might not be the best place for a quick flip. Also, consider factors like school districts, which can significantly impact property values.
Always compare like-for-like properties. Condos to condos, single-family homes to single-family homes, and so on. Mixing property types will skew your data and lead to inaccurate evaluations.
Consider off-site factors like nearby cell towers, highways, or undesirable neighbors. These can significantly impact your property’s appeal and should be factored into your evaluation.
Let’s say you’re evaluating a property on 2904 Olive St. Start by pulling tax records to confirm square footage, beds, baths, and year built. Next, use tools like Propelio to find comparable sales within the same subdivision or as close as possible.
Review the pictures of similar properties to ensure you’re comparing apples to apples. Once you’ve collected your data, calculate the average price per square foot and apply it to your subject property.
Mastering property evaluation through comparable market analysis (CMA) is a cornerstone of successful real estate investment. By accurately assessing comparable sales data, taking into account key factors like square footage, year built, and property features, you can make informed decisions and avoid costly mistakes.
Understanding the nuances of market conditions, property types, and off-site factors further refines your evaluation, ensuring that you can accurately determine the After Repair Value (ARV) and maximize your investment potential. With these insights, you’re well-equipped to navigate the complexities of property valuation and achieve real estate success.
Get started with Propelio and unlock all the tools you need to succeed in real estate. Sign up now for a 14-day FREE trial: Start Free Trial
Many have asked how I climbed from wholesaling five years ago to flipping...
Welcome to the Real Estate Business Mastery Show! In today’s episode, we recap...
Welcome to another insightful episode of the Real Estate Power Hour. Today, we...
Good morning, everyone! I’m Robert Kelley, and today I’ve got Kristen Gary Saad...
Hey everyone, I’m Ryan from Propelio. Today, we talked with Lolita Shira, also...
Do you remember the first time you tried to solve a complex problem?...
Understanding the real estate market is crucial for investors looking to thrive and...
Hey folks, Blade Johnson here from Finishing Touches in Fort Worth, Texas. Today,...
In today’s fast-paced world, staying on top of your health can be a...
Hey everyone, good morning! I’m Ryan with Propelio, and today in the studio,...
Do you love learning from your favorite hosts? Subscribe and we will notify you when we release new shows.
You will never be left on your own. Our live chat is watched like Fort Knox, and that’s why our median response time is under 3 minutes. Have a question? Send us a message in the chat bubble in the bottom right corner.
Services
Resources