In this episode you will learn how to comp properties with Julie Clark and Joe Bauer
Use Google street view
Find natural boarders (natural break to neighborhoods)
1/4 to 1/2 mile out with looking at natural boarders
#1 RULE – DO NOT CROSS NATURAL BOARDERS EVER
*Go back further in time rather than crossing natural boarders
Basement space it worth less than above ground space (even if you can get out the basement slider). A basement is a basement.
WE ARE NOT REAL ESTATE APPRAISERS
Research square footage on main floor and basement when looking at how to comp properties. Always break it down per floor when looking at the comps.
Space above ground is worth more than below ground space. You need to breakdown space between main floor and basement.
How do we figure out a difference in square feet? The way Julie does it.
Main floor space
House 1 is 1300 vs. House 2 is 1000 sq/ft
X $125 = $37,500 more for 1300
Premium basement space
House 1 is 700 vs. House 2 is1000 sq/ft
X $50 = $15,000
$37,500 – $15,000 = House 1 is worth $22,500 more than house 2
In Seattle we sell houses for $400-500 per square foot. This could be much different in your area.
This is NOT a percentage is transferable to your market. You have to figure out the numbers yourself for your market.
Finished vs. unfinished basement
$50 vs. $25
When looking for comps on Sept 13th 2018
* If your market is adjusting… be more conservative.
* If you have any comp in Seattle that closed in the first half of the year… it will be completely different now! Julie might even consider taking 10% off.
Once you pick your comps you need to see through the sales history to see if it was in the “crazy balls” time. You need to look at when it went pending.
Buddy really is enjoying this conversation! FYI.
Read the full transcript of the show with Julie Clark below (coming soon)