Comp Analysis is a step-by-step wizard that walks users through the process to validate basic facts about a subject property, select comps and adjust those comps to yield a customized and flexible Comp Analysis Result.
You do not have to use as comps any of the properties calculated in the AVM or RVM® estimated home value, although you can easily see these properties. And you have the flexibility to enter a Recommended Price that may be derived from, or completely independent of, any comps calculation. This tool can be a great help in pricing discussions with clients and in generating price ranges that are both quantitative—based on comps and market information—as well as qualitative—reflecting the user’s knowledge of the property, the neighborhood and the market.
You can access the Comp Analysis from the Property Details page of any property. Look for the “Comp Analysis” tab or the blue “Create” button. Once you are on the Comp Analysis, make sure you have “Comparative Analysis” selected, and not “Sales Comparison Analysis,” as that tool is primarily intended for appraisers. (To learn more, read this article about the Sales Comp Analysis tool: http://support.narrpr.com/entries/24777217-What-is-the-Sales-Comparison-Analysis-)
The tool includes five easy steps to arrive at a result. First, you will validate the facts for the property (in order to perform a high-quality comps search); then search for comps (based on the adjusted property facts); adjust the comps; and, in the final step, prepare the comparative analysis. Here are more details on each step:
1) Confirm the Home Facts: Verify or modify the facts, like living area and number of rooms, about the subject property. These facts will be used to search for comps. The facts you change are highlighted in blue. Changes you make on the Summary tab of the Property Details page will appear here, and vice versa. Use care to ensure that you make complete changes here, and that the changes you make here match any changes you make to the property on the Refined Value tab. Examples: If you indicate that a property has a basement, you should populate the field with estimated square footage; if you note that a property has four bedrooms on the Refine Value tab, you should not indicate three bedrooms in the Comp Analysis tool. (The application will try to resolve such contradictions.)
2) Search for Comps: Using the custom search tools shown to the left of the map, you can select the right comps for the subject property. The search tools include map searching and the ability to narrow your search based on sales time-frame, property status (active listing, off-market, pending, under contract and recently sold), distressed status, beds and baths or living area, and many other parameters to really fine-tune your search. You can select only single family homes, or include other property types. Once the search yields a list of options, you can click on the highlighted address link for the properties in the search results to view more information about that property in a new browser window.
Comps returned in this search that were also used in the AVM or RVM® calculation are flagged with a star but are not weighted differently than any other comp.
To select comps from your search results, you will want to click the box next to Add to Comps List. We recommend selecting no more than ten comparable properties for a single analysis. When you are done, you will see your selected comps display in the sidebar list to the right of the comps search results. You can learn more tips about finding comps in this article: http://support.narrpr.com/entries/22292048-how-do-i-find-good-comps-for-a-subject-property
If you're not satisfied with the results of your comps search, you can modify it. When you revise your search, you will see a summary display of all the parameters you used in your first search, which is especially helpful if you return to a property hours or days after your initial search.
If there is a particular property that you would like to use as a comp and it did not appear in your search results, you may go back and add it yourself by selecting "Add a known property" and typing in the address. You may also type in the MLS Listing ID and add a listed property that way.
3) Make Adjustments: After selecting comps, you can adjust their impact on the subject property by rating their condition. The comps you chose are presented in a grid. Within this grid, you can rate each comp relative to the subject property to adjust the weighting of the comp in the analysis, and you can decide whether to use public records data or data from a particular listing of each property. Once you choose the property record you want to use, you can then select which photo from that record you want to have appear in the report and even make it a larger view if preferred. The price used in analysis is based on the record chosen. For example, you might want to use a sold price from an earlier sale, rather than the current estimated value of a property from its public records, so you would use the dropdown to navigate to the older record for the property.
Your changes are previewed on this page, so you can see their effect before you complete them. You can also choose the order the comps will display in any report you decide to run.
4) Review the Result: If you are not satisfied with the result in the third step, you can easily override it by entering your own number in the fourth (and final) step. You might wish to round the number up or down, or you may have a price in mind that you want to present to your client. You can also enter a range that is narrower or broader than the one generated by the tool, or not show a range at all (by entering your own price but leaving the range fields blank).
If you bypass this step, your result from step 3—a number and a range—appear in reports you generate. You will also see the result on the Property Details page. If you complete step 4, your new number, and a range if you enter one, appear in those locations.
5) Get a Seller’s Report: This is a shortcut to generate a Seller’s Report with the comp analysis that you just created. By clicking the "Print Report" button, you will go straight to the Reports tab to follow the steps for generating a report.
For agents, the Comp Analysis tool’s advantage is the ability to more precisely pinpoint a price range for clients who are buying or selling a property. Your analysis will be preserved for 30 days, after which we encourage you to update it. New property data may have superseded the information you used to create your analysis.
Note that you can view the neighborhood sales and competitive listings used in the AVM or RVM® calculation, which is completely separate from the Comp Analysis function. A pop-up window allows you to view the properties used to calculate the estimated home value. You will see the subject property’s estimate, estimate range, confidence score, date of the estimate, and a list and map of all the sales and listing information for the other properties.
If you want to refine the automated estimate to reflect home improvements, market conditions and other factors, you will still use the Refine Value tab on the Property Details page.
Once you complete the Comparative Analysis, you may consider running a Sales Comparison Analysis for the same property. If you do, you will click on the radio button for Sales Comparison Analysis, complete step 1 of confirming the home facts, click on "Find Comps" in step 2 and you will get a pop-up message asking if you want to copy the comps you chose for the Comparative Analysis. By selecting yes, you can use the ones you already searched for without having to search for them again. Everything else will proceed the same.