How to Run Comps On The MLS - YouTube

Hey guys, I am just doing a quick video

to show you how to

Run some quick comps for a subject property

I'm just gonna get started right away

so you're gonna go up to the search here in the upper left and I'm gonna

Go to modern search modern and classic

It's it's a transition to a new user interface and everything's gonna be modern soon

Anyway, so I use it for everything but you go to modern this home is a detached single-family home

And now we're gonna want to find this property on the map so I'm gonna open the map right here

Then I'm gonna click locate

the property address

Is 7 6 7

Northampton

In Crystal Lake

So just like that it takes me right to the property

And typically, I would use a circle for a radius but you can also use a polygon

to really focus in on

specific neighborhoods

So as you can see I am targeting

This neighborhood right here which is where the house is at you can adjust these at any of these points

to get more

specific

If need be

so I will finish and you will see up here in the upper right it automatically updates the number of matches and

so

I'm gonna make sure that the status of the properties we're searching for are closed properties. These are the proven sales in the area

And because we only have 27 matches I don't need to add any other criteria

I'm just gonna zoom in a little bit and

I am gonna start looking at the homes

closest

To where our subject property is here at Northampton

So I've already been to the property I've seen the condition it's in and

I know exactly what to look for in these comparable properties. It's a 5 bed 2 bath house

it's about

2,500 square feet total, it's a split-level home. And so I'm gonna start clicking these and

Looking at the photos to see what condition these comparable properties are in

So this one isn't a bad comp

It is

Dated just like our subject property, but it seems that this house is actually in slightly better condition

It's a smaller house

So I'm gonna calculate price per square foot by taking

180,000 and

dividing it by 2-0-4-2 which gives us 88 dollars a square foot and then I'm gonna multiply that by

Our

Subject property square footage of 2484

Which will give us an estimated list price of about 219 or 220

Okay, so we have that let's go over here

This is a much smaller house

Let's look at the photos

It's a smaller house, but it's in much better condition nice and clean some dated features for sure, but

Looks like it has some updates

Ok, I'm liking that to 220 number still

You know what I'm gonna I want to look at properties on a list here

Because I want to look at some split-level properties in this area

So here's a split-level

Not too far

Nice and clean and clear dated for sure

Looks to be in

better condition than our subject property and

this one sold for

175

so

I'm gonna calculate

175 divided by the square footage of 1702 I

Hit the wrong button

175 divided by 1702 equals

Basically 103 square foot. Let's multiply that by 2484 which is our subject property

Takes us up to 255. Like I said this comparable is in a little bit better condition and

It's a smaller house so it commands a higher price per square foot. So I'm still liking our 220 price

So now that we kind of used three or four... three comparables at this point to

to kind of target around a 220

valuation more or less

So what I'm going to do next is I'm going to go to that 220 price point and see how realistic that is

Based on what's closed

So I'm going to click this one this one's roughly the same square feet is our subject property

But it is in much much better condition

So that's not good for our subject property

So that's sold at 230, yeah, I think that devalues ours by about 10 grand to about 210

215 so let's keep going down

Here's another split-level two stories, but it has 5 beds 2 baths

Fully renovated it looks like maybe well looks at least partially renovated

And

A smaller house, but it's a much better condition. I

definitely think that this still

This still puts us at about a 210 to

220 value for our subject property

Let's look at one more

So here's another one with close...about 400 square feet less

Well the photos suck that's for sure

So some updates some datedness

202,500

So what I'm gonna do is I'm gonna do one more calculation here 202,500

divided by the square footage 2042

Gives us 99 dollars a square foot. Let's multiply that by

2484 which is our subject property square footage gives us

246

I'm just looking for things in the description that would

justify that higher price

I'm seeing it's a nicer kitchen

newer stainless steel appliances

The home is just an overall better shape than our subject property

So, you know based on this I think that puts us again at about a

Right around that 220 mark so you

Know based on this valuation and the subject property that we have. I'm thinking a

suggested list price of between 210 and 220 and

That's just using the closed comps those are the proven comps so

Anytime that you are doing an evaluation you want to use the closed comps first to see what's proven

to be sold and then you want to go in and basically

Confirm that price with what's on the market

so if the market has shifted one way or another you'll be able to tell based on what's active and

what's under contract and on the market, so

Real quick to finish this up

I'm going to switch this from closed to

Everything that is active and under contract

Which gives us 31 matches and

Now, let's go down to that price point we came up with right around that 210-220

And so this one's pretty close by this is only 200 square feet smaller

It's listed at 220

Split-level just like our

Subject property

But

Clean open looks like it's been updated much better condition. So this definitely proves

That our list price is gonna have to be closer to 210

To compete with what's on the market

And

Then the very last thing you're gonna want to do is you're gonna want to take that that solid

Valuation that you just created at 210 and you're gonna want to see if anything that is less expensive

than that number is

Better than your subject property because if there's a cheaper house, that's better

You're still priced wrong. You got to make sure that that you're getting that you're providing the best value to the buyers out there

So if we're at 210

We need to be competing with this other house that's listed at 210

And this one's really nice and clean it's definitely got some datedness with that blue carpet

But it's still in much better condition than our subject property

Now it's about

700 square feet smaller

So I think that for the larger home even though it's in in worse shape. It's still a good price. So

You can you can go through and do that as as often as as you need to but that's essentially

You know the straightforward way without getting too deep into more comparables

how to determine a value when you're working with sellers or even when you're working with buyers and you want to help the buyer

determine an

Ideal offer price. So that's all I have for now. Let me know if you have any questions or comments Thanks