How to Quickly Comp a House in Under 5 Minutes Using Prop Wire and Redfin
TLDR: 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.
## Getting Started with Prop Wire
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.
### Verifying Ownership and Property Details
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.
### Analyzing Market Trends
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.
## Comping the Property
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.
### Setting Parameters for Comparables
1. **Time Frame**: Set the time frame to six months to ensure you are looking at recent sales.
2. **Distance**: Limit your search radius to a quarter of a mile to find the most relevant comps.
3. **Custom Area**: If necessary, draw a custom area on the map to exclude any irrelevant zones.
4. **Property Features**: Filter the results to match the subject property’s specifications, such as two bedrooms and one bathroom. Avoid including properties with different features, as this can skew your analysis.
### Evaluating Comparable Properties
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:
- **High End**: Look for properties that are in excellent condition and have sold for top dollar.
- **Low End**: Identify properties that may need significant repairs or are in less desirable locations.
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.
### Calculating the Average Value
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.
## Deep Diving with Redfin
To further validate your findings, you can use Redfin. Open a new tab and search for the same property.
### Using Redfin for Additional Insights
1. **Map Feature**: Click on the map feature and select "nearby homes for sale" to create a neighborhood overview.
2. **Custom Drawing Tool**: Use the drawing tool to replicate the custom area you created in Prop Wire.
3. **Filter Results**: Set filters to show only sold properties within the last six months, focusing on two-bedroom, one-bath homes.
### Comparing Listings
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.
## Conclusion
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.
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