Performing Market Analysis, Part 2: Homes

Market Analysis: Comparable Property Research for Homes

If you are researching a home, use the following sources:
Local realtors – Sometimes the best way to sell a home is through a local realtor. You may pay a commission of somewhere in the 6% range, but sometimes you will make more money this way than through another method. For example, if you try to sell a home on the internet, you will find that most people who buy homes this way want a big bargain. You may be able to sell the home for much closer to market value through a realtor, especially if you are willing to wait a little longer than an online auction would take. Also, realtors are usually very willing to help you get the information you need on a home (especially if they know there is a good chance of getting a listing from their efforts).
The reason that Realtors are a great source for comparable sales in the area is that they have access to the MLS (Multiple Listing Service). Through the MLS, they can find similar properties that have recently sold and get possibly the most accurate information about a property’s value.In some areas, you can access the MLS even if you are not a Realtor. To find out if this is available in the area you are researching, go to http://www.google.com/ and in the search box type in “MLS” plus the area you are researching (city and state). If it is a small city, use the largest city that is close for your search. This way you can get the MLS comparable sales listings yourself!!!
http://www.realquest.com/ – This is a great website for getting a variety of reports on properties. For example, it can provide reports on the property’s details, comparable sales, street maps, parcel maps, transaction history (what it has sold for in the past – especially helpful if you can’t get this from the county recorder’s office), flood maps, legal and vesting information (helpful in preparing deeds for the pre-auction acquisition method), neighborhood information, and much more. I recommend that you get on this site and see what types of reports are available. You can see samples of each of the report types before you buy them so you know what you will be getting. The reports are found at www.realquest.com/pro.
http://www.zillow.com/ – This site gives you a valuation estimate on a property based on information it collects from several different sources such as county records, other sales transactions, etc. It is not always accurate, but the website explains which areas it is most accurate in. This is a source of information you can compare with the others to see how accurate it is.
http://mail.eclientaccess.com/exchweb/bin/redir.asp?URL=http://publicrecords.netronline.com/ - This site will give you a link to give you access to county public records, if they are available online. If not, in most cases they will at least give you a phone number to call to access the appropriate county office to find the parcel information that you need.
This site can also provide you with comparable property lists to determine the market value of the property. There is a link along the left-hand side that says, “Comparable Properties”. Click on this link and follow the instructions.
http://www.realtytrac.com/
If you are researching a commercial property, try the following sources:
Local realtors who specialize in commercial properties
http://www.loopnet.com/ - Go to main page and click on “Search Recent Sales” in the middle of the page. Sign up and get comparable lists.
Assignment:
Get comparable sales reports for any homes on your lists that you are interested in purchasing.
Try to determine based on the information you have how much you can sell the property for.
Establish your maximum bid on the property based on the information you have found.

Disclaimer: "The information contained herein is meant for educational purposes only. By presenting this information, Mentoring of America (MOA) and its employees do not render legal, accounting or other professional advice. It is your own personal responsibility to seek professional advice for any specific transaction or investment from those licensed to render such advice. If you require specific legal, tax or accounting advice, seek the advice of a qualified professional."