How To Pull Comparable(s) For Market Value Calculations
In order to calculate a current Market Value price on a parcel to determine the minimum and maximum offer range in Investment Dominator, it is essential to pull comps from any one of the available Market Research site(s).
Note: There are various methods available for determining Market Value amounts and the following instructions highlight the most commonly utilized and recommended practice, that being the use of either SOLD or LISTED comparable(s).
Step 1) Ensure Land Records Have All Required Components
The required components must be populated to successfully calculate Market Values on Land Records in Investment Dominator and are listed as follows:
- Land Record must be in ‘Pending Preliminary Research’ status
- In the – Property Information section of the Land Record there must be a valid ‘Property Address (or Latitude/Longitude)’ populated.
- In the – Property Information section of the Land Record there must be a valid ‘Property Zip’ populated
- In the – Property Information section of the Land Record there must be a value in ‘What is the size of the property?’ field in either SQ. FT or Acres.
Step 2) Access The Options Function To Display ‘Market Research’ Menu
Access the Options function, (associated with the specific Land Record) to display the ‘Market Research’ selection as shown:
Step 3) Select ‘Market Research’ To Display Drop-Down Site Selections
Select ‘Market Research’ from the Options function to display the drop-down menu of sites for comparable(s) as shown:
Step 4) Select The Desired Site For To View Comparable(s)
Select your desired site to view existing comparable(s) based on required components in Step 1).
Note: Zillow.com is one of the most commonly used sites for comparable(s). Example: After selecting Zillow.com, Investment Dominator will execute Zillow.com site and pass the required field components, (Property Address, Property Zip & Property Size) for processing.
The system will place you in the specific area of the subject property for comparable(s) to display.
Step 5) Set Appropriate Site Parameters To Pull Sold/Listed Comps
Set the appropriate site parameters, (as applicable) to pull the Sold/Listed comparable(s) as follows:
Note: This example uses Zillow.com; however, the same parameters can apply to any of the other selected sites. The Zillow.com site defaults to SOLD comps.
- Set ‘Price Range’ – $5k – $200k
- Set ‘Home Type’ – Lots/Land (vacant land)
- Set ‘More: 2’ – Sold in Last – 6 months to 12 months
The resulting comparable(s) will display and you can utilize the address information of each comp and determine the distance from the subject property, (in Google Maps) to determine if the selected comp is a viable one to use for a Market Value.
In this specific example, if there are NO SOLD comparable(s) listed, the next step will be to check for LISTED comparable(s).
If viable SOLD comp(s) are found, they can be used for Market Value and there is no need to check LISTED comps.
If NO SOLD comp(s) are found and LISTED comp(s) are found, it is permissible to take 75% – 80% of the LISTED comp(s) values for Market Value.