Lesson 4: Comparable Sales

November 30, 2023

Review:

• Mortgage 101
• 1-page Interview write-up

Presentation:

“Your best offer is usually the first offer.” 

• Comparable Sales (aka “comps”)
  • Find similar properties recently sold (typically 3+)
    • location, size, construction style/materials, etc
  • Calculate price per square foot ($ per SqFt)
  • Apply price per square foot to your property
  • Optional: Adjust for major differences, e.g., guest house, finished basement, huge garage
• Estimate value of a property listed for sale
  • run through a few examples
  • Zillow can be helpful
• Money for Nothing: Inside the Federal Reserve

Activity:

• Complete a Comparable Sales Analysis for each of your initial 3 target properties.
  • How does your valuation estimate compare with the Asking Price?

Assignment:

• Complete a Comparable Sales Analysis for each of your 3 “Fresh Water Rust Belt” properties.
  • How does your valuation estimate compare with the Asking Price?
• Begin familiarizing yourself with the ROI Analysis worksheet