This blog post outlines a step-by-step process for quickly comping a house using Prop Wire and Redfin, detailing how to analyze property data, verify ownership, and assess market value effectively.
Comping a house is an essential skill for real estate investors and agents alike. In this post, we will explore a streamlined process for quickly determining the value of a property using two powerful tools: Prop Wire and Redfin.
The first step in the comping process is to input the property address into Prop Wire. Prop Wire is the largest database of seller leads in the United States, boasting over 157 million records. The best part? It is completely free to search and download leads.
Once you have located the property, verify the owner’s information. Check if they own other properties and confirm details such as square footage, number of bedrooms, and bathrooms. Additionally, look for any financial issues like tax delinquency that may affect the property’s value.
Prop Wire also categorizes properties based on motivation types, such as "off-market" or "empty nester." An empty nester typically indicates that the owner has held the property for a significant time and may be looking to downsize.
Before diving into comps, take a moment to assess the current market conditions. Look for trends in property values over the past few months to gauge whether the market is stable, rising, or declining.
To comp the property, click on the comps feature in Prop Wire. This will display the subject property along with comparable properties in the area.
Once you have your list of comps, analyze their sale prices and price per square foot. Identify the high and low ends of the market:
For example, if you find properties selling between $35,000 and $50,000 on the low end and around $150,000 on the high end, you can start to establish a value range for your subject property.
Select a few comparable properties that best match your subject property. After choosing the relevant comps, Prop Wire will calculate the average value based on your selections. For instance, if the average value comes out to $160,000, you now have a solid estimate of the property’s worth.
To further validate your findings, you can use Redfin. Open a new tab and search for the same property.
As you analyze the listings on Redfin, compare the properties to your subject property. Look for similar features, renovations, and overall condition. For example, if you find a comparable property listed at $154,000 that closely matches your subject property, this reinforces your earlier findings from Prop Wire.
By utilizing Prop Wire and Redfin, you can efficiently comp a house in under five minutes. This process not only saves time but also provides you with a comprehensive understanding of the property’s market value. With practice, you will become adept at quickly assessing properties, allowing you to make informed investment decisions in the real estate market.
