In real estate investing, your profit is determined by how you buy the property. Not so much for how much you sell it for. Running comparables is a key component to your success. You must know the value of the repaired property, as well as the sale price of the properties compared to the subject property in the current market. In today’s market, compensation is handled a little differently than it was in 2005-2006. Don’t even waste your money or time hiring an appraiser.

Some of the free websites that you can use are sites like Zillow, Trulia, and you can also check out your tax adjuster’s site. Now these websites are free, so they are not the most accurate. However, they will provide a range close to current property value, as well as homes sold in the area. Realquest is one of the best sites to use when running comps on a property. It is a monthly fee that you have to pay. But you can access information about the neighborhood, schools, crime rate, etc. It is by far one of the best websites to use that is quite accurate.

The best resource to use to run comparables would be MLS. Now, of course, only real estate agents have access to the MLS. But if you engage with one and build a relationship with them. They might agree to give you an assistant login. So you can also access the data in MLS. As a real estate investor, it is imperative for me that you have access to MLS. You can still change a deal without it. But it is very useful!

When comparing a property, always be sure to take note of the square footage, bedrooms, and bathrooms. If you sell wholesale, all if not most of it you will be selling to cash investors. Therefore, you need to find out what prices properties near the area of ​​interest are selling for. Don’t go comparing apples to oranges now. Instead, compare that 1,400 square foot 3-bedroom, 2-bathroom house to a similar house recently sold for cash. Look at properties that have sold in the last 3-6 months max. Once you’re comfortable, you’ve also found some good properties to compare. I would say make an offer as low as 10-15k for what comparable properties have sold. Unless the property needs a complete rehab, you’ll want to offer less.