A Comparable Sale Must Have These 4 Criteria!

A comparable sale must have these 4 criteria's

A comparable sale must have these 4 criteria’s

 Hi Friends,

I found this great FREE Real Estate ebook called “Quit Your Job in 19 Weeks or Less” by Flip2Freedom.com.

It discussed how to jump into real estate (flipping, wholesaling) to get out of the rat race. I’m all about having your own business, moving out of the E/S quadrant and moving into the B/I quadrant. Thanks to Rich Dad Robert Kiyosaki – I have found a proven way to financial freedom – real estate. Now it’s just time to implement and take action – learn, make mistakes, and never stop until I win!

Sorry about that…back to comparable home sales :-)

When a real estate investor has to put a value on a house that is part of their deal, they need to find comparable sales in the area.

This free ebook had the following information…

A comparable sale must have these 4 criteria

1. Comparable sales must be within a 1 mile radius of the subject property.

2. Comparable sales must have closed with in last 90 days.

3. Comparable sales must be within 300 sqw of the subject property.

4. Comparable sales must be of like kind. (eg, single story to single story) 

Comparable Sales:

Knowing what the property is worth is one of the most important aspects of wholesaling properties. Not knowing value can cost you tens of thousands of dollars.

How to Comp a Property – THE FORMULA

You’re looking for 3 properties that have sold in the last 90 days that are within 300 square feet to one mile of the subject property.

Where to Find Comps:

1.  Zillow.com: This site is a good start. It will give you properPes that have sold within the neighborhood of your subject property.

2.  RealQest.com: This is another great site to find comparable sales.

3.  eApprasial: This is similar to the above tools; they’ll give you another perspective on the value of the property you’re trying to comp.

4.  MLS:  Multiple Listing Service. Real estate agents have access to all the properties that have sold using the formula above.
The Best Method to Determine Comparable Sales:

The best option is MLS comparable sales, because you can see all the pictures and comments about the property. I also use the websites to get an idea of what the property could be worth. Another effective way is to simply drive the neighborhood. You’re looking for houses that have realtor signs in the front yard.

Call the listing agent and ask them for the property details. You’re looking for how many bed and baths the property has, the square footage, the list price, the days on market and general condition of the property.

Knowing this information along with the properties that have recently sold will give you a good idea of the price the property could sell for.

Thank you, Flip2Freedom.com! This is great information.

Leave feedback if you know of any FREE sites to find comparable sales. I know Zillow.com is one free comp sales resource :-)

I want to share information on all free resources I find on my path to wealth. My journey has just begun, so let's share! Email me if you have any questions: info@FreePathToWealth.com.

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