Comps! 🏠 #realestate #comps #deals #wholesale

Name: Comps! 🏠 #realestate #comps #deals #wholesale
Uploaded: 2024-02-09T23:54:58+00:00
Duration: 1 min 7 s
Channel: Jake Burhans
Description: In this instructional monologue, Jake Burhans explains a practical approach to conducting comparable (comps) analysis in real estate. He emphasizes that…

9 Feb 2024 · 1 min

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1:07

In this instructional monologue, Jake Burhans explains a practical approach to conducting comparable (comps) analysis in real estate. He emphasizes that sold comps provide the baseline of actual transaction prices, while pending and active listings reveal market direction and pricing pressure. By comparing sold prices (e.g., $400k) with pending listings (e.g., $360k) and active listings lingering on the market (e.g., $380k for 40‑50 days), an investor can gauge whether the market is trending down and adjust the after‑repair value (ARV) estimate accordingly, often arriving at a lower ARV (around $340‑$350k) than the raw sold comps suggest. The key takeaway is to weigh all three data sources—sold, pending, and active—to derive a realistic market read and accurate ARV.

Chapters

Hey, quick note on comps. How the heck do you run comps? Yes, you always wanna look at sold comps. Those are the actual data points of what things have sold for. But also paying attention to active listings and pending listings give you an idea of where the market's trending, right? For one, pending listings, say you have a bunch of sales at $400,000, but you have a bunch of a similar property, bed, bath, square footage pending at maybe $360,000, that could show you that that market is trending down. Active listings will show you, you might have a similar property that's been active for 50 days, right? Similar condition, similar bed, bath, That tells you that that is— that price is too high. So maybe that there's a price that's active at $380, similar comp. You're seeing all these comps that sold in $400, but for some reason now that same property is, is active at, at $380 for 40 days. That tells you $380 is way too high, so you got to be under that, right? And then on top of that, active at $380, you're seeing all these pendings down at $350, $360. So that tells you that the ARV on this property is probably around $340, $350. Not the $400,000 you're seeing on comps. So it's important to look at the pending as well as the active properties to get a true read on where comps are trending in your marketplace.