Knight in Shining Armor
Mashvisor likes to think of itself as your knight in shining armor. We like to save you from making poor real estate investment choices.
As a real estate investment tool, we aim to help you in all things real estate, including your comparative market analysis.
That is what we plan on doing now. Here, we show you how Mashvisor takes part in your effective comparative market analysis. We may even show you an example of a market analysis from our own data. If you ask us, we are considered one of those diverse real estate investing platforms.
From real estate performance metrics to real estate comps, Mashvisor’s got it all. So let’s look into how you should feature us in your comparative market analysis!
Hunting for Real Estate Comps for Your Comparative Market Analysis
You know more than anyone that real estate comps are the “main course” for a comparative market analysis. You want to take a look at the investment properties that are comparable to yours. Mashvisor helps you find those real estate comps with the click of a button. Shall we explore?
Click #1- The Market Featured in your Comparative Market Analysis
First things first, you arrive at our homepage and type in the city or neighborhood of your choice! Let’s say you want to take a look at investment properties in the real estate market of your choice.
Click #2- Pick the Investment Property for Sale Involved in your Comparative Market Analysis
You are then met with a page of all the investment property listings in the area, along with some details. Let’s say you are interested in the first property, so you give it a click.
Click #3- Take a Look at The Real Estate Analytics
So you’re digging the way the numbers are playing out for this real estate investment opportunity. The cash on cash return is looking good, rental income is attractive, and you like the sound of the investment property.
You guessed it, it sounds like rental income jingling in your pocket. So you want to find the rental comps to perform a comparative market analysis.
Click #4- Rental Comps for your Comparative Market Analysis
Everything looks good, but you want an idea of the real estate comps in the area. Here Mashvisor does not only offer you the details of the property but even a percentage of just how similar the property is to the one you selected. An innovative and unique way to find those real estate comps with the click of a mouse.
Click #5- You Sign Up for a Free Trial
You take a look at what Mashvisor’s platform has to offer and you want to give us a try (which you won’t regret). Some of the most successful real estate investors use the real estate analytics we provide to help with their real estate investment decisions. Who would want to miss out on performance metrics like cash on cash return, cap rate, and projected rental income?
To learn more about what Mashvisor has to offer, click here.
When you’re performing a comparative market analysis, you may want to examine more real estate comps that come with your free trial. The last thing you want to do is overpay for a rental property. Make sure you are getting what you paid for with the help of Mashvisor’s real estate comps.
By featuring the real estate comps you find with our product, you’re set for an effective comparative market analysis. To get all the insights, you need to go all the way. So go all the way with Mashvisor and sign up for all the real estate goodies.
To start your 14-day free trial with Mashvisor and subscribe to our services with a 20% discount after, click here.
So You Found the Comps, Now Create the Comparative Market Analysis
Here, we show you the steps to creating a comparative market analysis with the help of Mashvisor’s property listings and real estate comparables as an example.
So let’s say you found an investment property with Mashvisor with some good looking real estate investment analytics and you want to complete a comparative market analysis for it. Here’s how to start:
Step 1-Take Down the Real Estate Comps
Use Mashvisor’s real estate investing tool to find the real estate comps. Record the addresses of up to five properties that have sold and five houses that are currently on sale. Try to use the comparables with the highest percentage of similarity so you come out with an effective comparative market analysis. The more similar, the better.
Quick Tip-Take note of houses that are within a half-mile radius and houses that have been sold within the last three months, no later.
Then, list each of the properties you are looking at on some paper. Properties already sold on one sheet and the properties that are currently on the market on another.
Step 2- Draw Out the Amenities
Anything can hinder the actual value of a property, and features will differ from property to property. Insert some column headings for the number of bedrooms, bathrooms, and any other additions that would set the investment property apart. This could be anywhere from a swimming pool to a fireplace. It all counts.
Step 3- Look Over the Assessed Value
Mashvisor provides you with the assessed value of your real estate comps. Record this number and fill out the information of the amenities we mentioned above. How many bedrooms and bathrooms make up the rooms? What are the special little things the rental property offers?
Quick Tip: If you feel you can’t find adequate and accurate data, obtain some information from a local assessor. Or even explore the choice to contact a local real estate agent who would be willing to give you some details of the property.
Step 4- Fill It Up
List all the real estate comps you have found with Mashvisor, including the prices and details. To have a more accurate comparative market analysis, you want to use a minimum of three sold properties and three current for-sale properties.
Quick Tip: Try to compare investment property homes of the same style. For example, if you are looking to purchase single-family homes, compare it to other single-family homes. Not, let’s say, a condo.
Remember, we want equal amounts of both as well as real estate comps with similar square footage, bedrooms, and bathrooms. You won’t have to worry about finding those, Mashvisor does a good amount of the job for you.
Step 5- Comparing and Averaging
This is the big finale step! Here is where a lot of the math comes in, so get ready. Simple though, don’t be afraid. Add all the prices of the comparable homes. Divide the number you come out with by the number of properties that are involved in the calculation. This will give you the estimated market value of your investment property.
Quick Tip: Avoid any outliers that may throw off your averages or skew your data. Leave out the investment properties with way higher or way lower listing prices or square footage.
Another way to find the estimated market value of your home is to divide each property price by the square footage. This gives you the price-per-square-foot for each property (pst, Mashvisor already gives this to you with our property analytics).
You then add all those ratios together and divide them by the number of properties to end up with an average price-per-square-foot. This is considered the ballpark price of the investment property you are looking to buy.
You’re All Set
We would hope you’re ready to go and perform that comparative market analysis we’ve been talking about. Mashvisor wants to sit down with you when you’re doing that comparative market analysis of yours and hand you all the information you may need.
Need the cash on cash return values? We got it. Need some real estate comps? You name it. So take us on your real estate investing journey, and let us be your knight in shining armor. All we take is 5 clicks. There’s a comparative market analysis that needs to be done, so let’s do it.