How to Comp a House (EVEN During a Housing Correction)
Don’t know how to run comps on a house? This single skill could be costing you, or making you, hundreds of thousands on every deal you do. No matter what level of real estate investor you are—rookie, intermediate, veteran—the ability to comp correctly will put you above the rest as you walk away from deals far richer than other investors. And during a housing market correction like we’re in today, this skill isn’t just something that’ll make you more money—it’s what will stop you from going broke.
Comping, formally known as pulling comparables, is putting a potential property up against other properties in the area, finding a comparable price, and seeing how much can be made on a deal. Most real estate investors have pulled comps a few dozen times, but investors like James Dainard and Jamil Damji calculate THOUSANDS of comps monthly. They’re looking for the profitable property needle in the housing market haystack, and as two self-made multimillionaires, their experience shows that they know what they’re talking about.
In this episode, James and Jamil will show you EXACTLY how expert investors comp properties, what you need to look out for when calculating your own, and the “appraisal rules” that were taken DIRECTLY from the source on valuing properties. The tips in this episode could make you six figures more on your next deal. DON’T miss this.
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Note By BiggerPockets: These are opinions written by the author and do not necessarily represent the opinions of BiggerPockets.