- Comp means comparable. It is a real estate term that both buyer and seller should know well. It refers to homes located in the same area and very similar in size, condition and features as the home are you trying to buy and sell.

- Buyers look at comps when deciding what price to offer on a home, and sellers use comps to figure out how to best price their home for the market.

- It's one of the three things that you need to know in order to lock up a deal- value of the property, the amount of repairs to get to that value, where your market is buying.

- There are several resources for finding comps: MLS, Zillow, PropStream.

The MLS connects buyers and sellers of Real Estate and is controlled by a real estate board

Zillow is a database of more than 110 million U.S. Homes- including homes for sale, homes for rent and homes not currently on the market, as well as home values, and other home-related information. 

PropStream is a more detailed database. It can generate instant COMPS from multiple MLS' allowing access to the most current and accurate analysis available. It also provides off market non pre-foreclosure data. Moreover, it shows how to comp neighborhood and MLS Properties. It has several different tools that will help explore all the ways to solve real estate needs.

- If a COMP Property information is not there to get an accurate basis for value, then it is best to seek help from other Sales guys. Sales team members help each other out.

- Where do you find comps when there are none?

• In a lot of these scenarios is you just have to buy and use what's the number you couldn't say no or in other words, whatever the buyer is willing to pay for. Sellers are either they want to get rid of the property for a number that you can or they don't. You want to guard your acquisition time if you want to be closing properties.

 

• There are some areas and neighborhood where it's extremely difficult to find comps and it's not because people don't like to live there or it's not a nice community. It is because people don't sell and no one moves in that area. In these areas, you can look at historical data. Look at older sales within the neighborhood or its immediate over past several years to help gauge how the market has historically perceived the neighborhood. It's also important to make adjustments based on how the market has changed over time.

 

• It's often hard to find comps for rural properties and it needs some digging. If you can't find sufficient comps, the cost approach usually works to accurate means of arriving at an appraisal. Look if there are acreage being sold in the area. Figure out what you would pay for the land the house sits on, based on what land was sold for in the area, and what you'd pay to build the same property.

-  Bottomline is the safe bet is to go low and stick to whatever you are willing to pay for. No deal is better than a bad deal. Also ensure to protect your investors' downside risk. These are some important things in determining the value of a property when there are no comps in the area.

If you are in a real estate business or a wholesaler who got some questions and want them answered, feel free to connect with the guys at their Facebook Group: Wholesale Nation

IG @undreaking , @_andyspeed_

If you have properties that you're looking to move or properties that you're looking to sell, hit them up at [email protected].