This guide briefly walks you through finding comparable properties for a potential flip!
Our Potential Flip
For this example, we will pretend that we just heard about a property in Clawson, MI, that sounds like it could be a good flip. Our job now is to find comparable properties (comps) for this house in order to determine if the house is worth persuing.
The property we need to find comps for is a ranch with 3 bedrooms, 2 full bathrooms, built in 1955, and approximately 1500 square feet. The property also has an unfinished basement and a 2 car attached garage.
Because we are interested in potentially flipping this property, the comps that we are looking for will have already been flipped. If we can’t find enough comps that have been flipped, we can look for other properties that have been well maintained and hopefully had some recent updates done.
Finding Comps With Quick Comp
The fastest and easiest way to find comps with REFocusMaps is with the Quick Comp feature.
Just click on the Quick Comp button on the Map page, then fill out the information about the property. In our case, we’ll enter the address of the property into the address field, then click ‘Sale’ under Listing type, enter 3 beds, 2 baths, 1500 sqft., 1955 for Year Built, and ‘Yes’ under Garage and Basement
After clicking ‘Find Comps’, REFocusMaps will automatically find similar properties near the property in question.
Fine Tuning Our Search With Filters
The way REFocusMaps automatically finds similar properties is by filtering out all properties that are too dissimilar from our potential flip. Sometimes, you may want to adjust the filters that have been automatically applied. To do this, simply click on the ‘Filters’ button on the Map page.
Within the Filters window, under ‘Active Filters’, you will be able to see all the filters REFocusMaps applied in order to only show similar properties. If needed, you can adjust these filters by clicking on the pencil icon for Advanced Filters (AF) or by editing the fields under Quick Filters (QF).
Favoriting Good Comps
Now that REFocusMaps has narrowed our search to just a handful of properties, all you have to do is look through them and figure out which ones are good comps for our property.
Another feature that REFocusMaps has to offer that will speed up our search even more is Visualizations. With Visualizations we are able to color code the potential comps by close price, which will allow us to quickly identify which properties sold for the highest price and thusly which properties are likely to have been flipped or recently renovated.
Saving Our Work
That’s it! Now we have 4 good comps we can use to determine our after repair value and show to our potential lenders to prove that our flip will sell for what we say it will sell for!
Now that we have done the work to find and favorite these comparable properties, we will want to save our work so that we can easily return to our Map. To do this, just click on the ‘Save Map’ button on the Map page and enter in a name like ‘Huntley Comps’, for example.
Once our work is saved, we can easily return to this map by clicking on the ‘Saved Maps’ button up in the toolbar. This is a huge time saver if you end up needing to make any adjustments, or if your investing partners have any questions about your comps.