How to Run Comps as a Realtor
In real estate, comps refer to comparable sales. You can determine comps by comparing the property you wish to buy against the properties within its 1-mile radius. However, the compared properties must have the same attributes and be sold within 12 months. The attributes can be age, subdivisions, bedrooms, square footage, etc.
How Do You Find Comps and Run Them?
To find the right comps, you must start looking for real estate listings in the area. The listings will typically feature asking prices, not the sales price. Therefore, you have to find out the exactly selling price of the property as this will give you an accurate gauge of the actual worth of the home.
As a realtor, you can run comps using the multiple listing service (MLS). The idea is to run a comparative housing market analysis. Sometimes investors or homeowners selling a property off the market will ask you to run comps in order to find out the current worth of the home.
Although an off-market home does not appear on the MLS, investors, sellers may pay real estate agents a decent commission for the leg work required in running the comps.
Steps to Run Comps as a Realtor
Here are simple steps to run the comps as a realtor.
- First, you must determine which of the multiple listing service databases you need access to.
- The next step is to register an account on multiple listing services such as Zillow, Trulia, Realtor.com etc.
Some MLS websites, such as Trulia, allow you to create an account and search for properties. Once you get the results, you can find comps by clicking on the option saying “Comparables and Estimates.” These estimated prices will help you advise your clients to sell the property at its real worth and not at an undervalued price.
For instance, if your client is selling a home worth $200,000 and a buyer makes a lowball figure of $160,000. The comps will allow you to get back to the buyer and say that another property with the same attributes, square footage and age were sold at $200,000. Therefore, the buyer must raise the price somewhere around the $200,000 figure.
Running Comps on Zillow
Zillow has a very user-friendly and interactive tool to run comps and build a personalized comps summary. Simply go to Zillow.com, log in to your account and start searching for a property you wish to buy. On the upper right, you will see an option saying “Expand.”
Now scroll down, and right below the Zestimate price option, you will see a “Price This Home” button. You have to click on “Choose Comps.” You can follow the instructions and narrow down your comps search down to 8 homes that match the attributes of the property your client wants to buy or sell.
MLS platforms can make it easier for you to run comps. However, you can even do market research by surveying the local area by searching public records for the properties sold in the last year. Comps can add oomph and act as a support for your asking price. Run comps as a realtor to strengthen your negotiation position and save yourself and the client from losing tens of thousands of dollars.
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