One thing I get asked about a lot is comps. Many investors just simply don't know how to read them. Take these items into consideration:
- What part of the year are you looking at?
- Are you really looking apples to apples?
- Did you drive the neighborhood?
- Is seasonality at play? (IE: your six month window is fall and winter months)
- Are the comparables rehabbed, as-is, or “well maintained”?
- Are there major streets, or other geographical barriers, that might impact the comparability?
- Are there any “White Elephant” issues? (IE: High tension power lines, graffiti, burglar bars, three pit bulls next door)
I will be teaching a class in April about this subject. It is:
Real Estate Intelligence: Making Sense of the Data
If you would like more information, please fill out the form below: