Good Or Bad Comparables A Very Important Tool In Real Estate Investing!!!

Good or Bad Comparables – A very Important Tool in Real Estate Investing!!! by Alice GreenWelcome to Real Estate Investing. Today, we are brought to you by Hard Money Lenders Texas. Today, I want to talk about the importance of selecting comparables when you are trying to value a property. Valuing a property’s worth is one of the most important jobs, a real estate investor has and one of things that we see people make the mistake all the time and sometimes mistake is fatal when it comes to the rehab and retail, is looking at comparables and deciding if they are good comparables or bad comparables.One of the mistakes that I would like to talk about today is jumping major streets. So in lots of places there are major streets, there are borders. On one side of the street is a different subdivision than the other side of the street and I am not talking about your regular residential neighborhoods. I am talking about your main thoroughfares, not your freeway systems, not the highway systems but the busier streets in the neighborhoods. The ones the people commute on or even the ones that people take to go through neighborhoods. Specifically those streets that take through neighborhoods; they breakup subdivisions and comparables on one side of the street and they may have a higher value than the ones on the same side of the street or in the same neighborhood on which the subject property is.Lots of times real estate agents or sellers will use comparables that are on the other side of this major corridor or this street that breaks up the subdivisions to get a higher price. It is very very important that when you are looking at the value of the property then you not only look at the property but you also look around the neighborhood and you see what corridors or what are major streets or streets that break up neighborhood. What you are trying to find is comparables within the neighborhood and most of the time, there is a mistake which occurs frequently is that there are comparables within the neighborhood but someone jumps over a few streets, some major streets that break up the neighborhood to find comparables that are higher than the comparables that are they are currently looking at and that just does not fly guys.The problem with that is that if you do that, it is going to come back to bite you. Just because it may be a similar property and it may have the same number of bedrooms and bathrooms and even square footage, if you overlook comparables you will get burned. Overlooking comparables is a number one mistake, which real estate fix and flip investors makes all the time. Now so that you do not get emotional and you do not make mistakes; one of the products that Hard Money Lenders offers is a property evaluation, an estimated value and property approval.So the estimated value is a computer generation that actually pulls the information, comes up with a value for what the property is worth and also gives you a confidence score as to fairly confident, somewhat confident, absolutely confident and not confident at all as to what that value is. But the nice thing about that is you also will receive a property approval, which means that you can have guaranteed funding on the property. Now the funding is going to depend upon the full evaluation that gets done when they send some body over to the property. But at least you know that the funding will happen. You just do not know the exact dollar amounts but with the estimated value you have a pretty good idea and a pretty good confidence level as to how confident that price will come in at.So you need to make sure that you stay within the neighborhood, don’t jump streets; main streets that break up neighborhoods. You got to look for comparables that are within the same neighborhood and any roads that break up the neighborhoods or the traffic arteries within neighborhoods. Those are so important to stay within those boundaries and not jump them. It is also important not to overlook any comparables, any thing at the same square footage and bedrooms and bathrooms need to be looked at within a certain parameter as long as you are not jumping over streets that are breaking up neighborhoods Happy Investing. Hard Money is an ideal place for getting Hard Money Loan within 48 hours and without any down payments in USA. We are really helping Real Estate Investors in making money. When other Hard Money Lenders say No. We say YES! visit: Source: