In real estate investing, your earnings are determined based on how you buy the property. Not so much for how much you sell it. Running comparables is a key component to your success. You need to know how much the repaired property is worth, as well as what properties are being sold to compared to your property in question in today’s market. Market comps are handled a little differently today than they were 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, who can also check out their tax assessor site. Now, these websites are free, so there are no more accurate ones. However, they will provide a range close to the current value of the property, as well as the houses 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 MLS. But if you relate to one and build a relationship with them. They might like to give you a wizard login. So you can also access the data in MLS. As a real estate investor, it is imperative in my opinion that you have access to MLS. You can still make 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 are wholesaling, all, if not most, you will sell to investors for cash. Therefore, you need to find out what the properties are selling for near the subject area cash. Don’t go comparing apples to oranges now. Instead, compare that 3-bed, 2-bath 1400 sq. Ft. To a similar home recently sold for cash. Look at the properties that have been sold in the last 3-6 months at most. Once you get comfortable you will find some good properties to compare as well. I’d say bid as low as 10-15k for comparable properties that have been sold. Unless the property is in need of a complete rehab, you will want to offer a lower offer.