What is a comp (comparable)? To determine the value of a house, an appraiser or an agent will typically look at three comparable sales in the area, or “comps” as they are known in the industry. Agents and Appraisers have access to the Multiple Listing Service, known as the MLS, which is a database of all the properties in a given area that have been listed “for sale,” are in process of being sold (pending,) or have already been sold. Without being an agent or an appraiser, you may have a harder time accessing this information. Additionally, you can ask your agent for a list of comps – which should be easy and free for your agent to supply to you. It’s very important to find our comps immediately or as soon as possible. When I’m looking for comps, (to use a popular metaphor) I try to get as close as possible to an “apples to apples” comparison. Rarely would one ever be lucky enough to be comparing “red apples to red apples” unless you’re buying within a condominium or homeowners association neighborhood. You’ll likely be comparing “red apples to green apples,” but it’s important that they’re both “apples.” Nothing will be identical but comparing something close to what you’re buying will get you the best numbers. Here is a short list of seven very important comps that I include in all of my property analysis’: 1. How much have comparable properties sold for in this area within the last 6mo? 2. To expound on number one, what has sold within 1/4 mile to 1/2 mile of your house? 3. Ensure that my property is equivalent to the comp property – is it a rehab, REO, HUD, or a homeowner-occupied and then I organize them accordingly? 4. What is the square footage comparison? I’m looking for a house with comparable size/square footage. 5. How many bedrooms and how many bathroom? 6. What is the yard/lot size? 7. How big is the garage, if applicable? So where does one go to pull comps? The easiest way to pull a comp is to be a licensed real estate agent or broker because one would obviously have unfettered access to the “Multiple Listing Service,” or the “MLS.” Fortunately for me, my wife is a licensed agent and broker. However, if you’re not licensed, I recommend either earning the license on your own or having someone close to you like a spouse, business partner, or a close family member/friend obtain theirs. It can really save you a lot of time and even some money depending on the situation. However, it’s not always as simple as getting your license or paying for someone else close to get theirs. Before my partner earned her license, I had to use other options. I still use...
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I admit I totally love the Christmas holiday season. Yeah, I love the near-mystical side of it with the songs, the snow, the decorations. The anticipation of family getting together, the unexpected kindness and charity seen among strangers. I also love the traditional side of it wth the baby Jesus in a manger scene with shepherds, angels, beautiful choirs singing the great carols of the season. Also, I enjoy the mythical side of it with children sitting on Santa’s lap with their wish list, the elves, the sleigh being led by Rudolph and his red nose and watching “A Charlie Brown Christmas” special. Followed by “It’s a Wonderful Life”. Additionally, I truly enjoy the commercial side of Christmas with Black Friday sales and the crowded malls. The decorations of the stores, finding a good bargain and seeing the delight on the face of those who receive it. It’s a very complete package of emotions. Yes, I enjoy it all. Sometimes, however, I wonder if I have actually learned anything of real substance. Other than celebrating the tradition and having a feel-good emotional experience. Traditions that fail to teach deeper truth can lose their validity. Once that occurs it is only the passing of time before the tradition is a shell. Hollowed out with nothing of substance. I have a very dear friend in business whose family is Jewish, but not in any meaningful way, as he states it. The only 2 traditions he follows is Yom Kippur in October when he goes to the synagogue and the weekly Sabbath eve meal on Friday nights. I have frequently asked him why he honors those. His answer is, “I don’t know, we just did it in my family growing up and we just do it”. When asked what if any significance he assigns to those traditions, he again responds with, “None. We just do them because they are traditions”. Perhaps there is merit in traditions for traditions sake, but I want my Christmas traditions to have more than that. I want to leave this world having left my children a heritage of more than, “I don’t know; we just always did it that way”. I’m reminded of a story of a newlywed couple celebrating their first Christmas. The young bride fixed a ham after her family’s tradition. She began by cutting off one-third of the ham and putting it away in the refrigerator. The husband asked why she would do that. She said, “Because my mother did that”. Year after year, the wife performed the same ritual of lopping off a third of the ham and only cooking 2/3 of it. After many years, the couple visited her family for the holiday and sure enough, the mother of the bride performed the same ritual. The young husband asked his mother-in-law why she did that and her...
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I like the term, “new”. It implies fresh, clean and unspoiled. The genesis of a new year begs to be treated with the same respect one would show a new car, a new house or a new job. A new year begs for a fresh start, a clean slate, and perhaps new goals and some fresh evaluations. Let’s talk about new goals; call them resolutions, goals, a wish list…whatever you prefer. The bottom line: Nearly all of you reading this have some fresh new start you’d like to commence in 2015 and hopefully follow it through sufficiently to see some kind of change. Perhaps it’s a diet, a new exercise regimen, additional education, or learning a craft or a new language. Maybe it includes living by a stricter budget, learning to invest wisely, or obtaining a second job? Let’s address the issue of why so many resolutions fail. Here are seven decisions one must make BEFORE you set any goals: 1. Resolutions fail because the goals are fuzzy and non-specific. Losing weight is one of the more popular resolutions, yet, that’s a bit broad. How much weight is “losing weight?” 5lbs? 15lbs? 30lbs? You will come much nearer to reaching a goal when you can define it in simple language that you understand. Choosing to lose 5lbs in January and 10lbs by spring break is more specific. Make your goals crystal clear, specific, and realistic. 2. Write down your goals/resolutions! Don’t rely upon your memory as it’s faulty. Type or write them out in plain simple language and post them where you will be sure to see them multiple times daily. I place them on the fridge and the bathroom mirror – and it works! Having goals written down helps your mind to better visualize your desire, but posting those goals before you daily puts the energy of your mind to work figuring out better ways to reach those goals. We succeed at what we think about in our spare time. Don’t plan a goal and then trust it to your memory; help yourself to succeed. Keep that goal before your eyes multiple times daily. 3. Have a plan. A goal without a plan is a plan to fail! You may need to do some core research and enlist the advice of someone accomplished in that area, but you will need a proven practical plan that you will follow – Your plan must be: simple, proven to work, thoroughly understood by you, something that you want to follow, and something you can do without radically changing your life schedule. In short, the plan must fit who you are, not who you are not! 4. Try to get a partner to follow the plan with you. Your chances of succeeding increase many times when you have the incentive of a partner joining you. ...
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New Year’s Day is my anniversary. Though my time and attention are definitely and obviously focused on my gorgeous wife, I had some reflections I wanted to share with my friends as I ponder this special day. In my real estate book, “The Boom After the Bubble”, (available on this website) I tell the story of losing my business and my first wife. Who cleaned out all my assets and left me as poor and nearly as naked as a newborn child. That is pretty much how I re-started. Rebecca is now my wife. My college sweetheart. Yes, I should have married her out of college but we both got busy chasing careers. Well, now here we are, together and insanely happy. Sort of like, well, two college kids who rediscovered each other. As I was reliving our personal journey back to each other after the losses and heartaches and what I have learned, I felt there could be helpful insights to many of you. Many of you who may be fighting your own personal struggles. One thing I learned is that one thing in life is certain: uncertainty; that the only thing that doesn’t change is ….change. None of us get through life unscathed without a few bruises, scars and hard-knock lessons we’ve learned. So, being overly dramatic or overly upset that life has handed you a bowl of lemons isn’t necessary; It’s to be expected. When we anticipate life, we never include in our daydreams the messes, the scandals, the losses, the profound hurt…but that is what makes up a whole lot of real living. It’s what one DOES with the messes, the losses, that determines if the positive part of the daydreams materialize. We have a friend who married a man with the surname of lemon. The wife cross-stitched the motto: “When life hands you a lemon, learn how to make lemonade.” And that’s the whole of life. There is just too many circumstances one cannot control, but we can control our reactions. I shed many tears over my losses. And all the usual negative thoughts attacked my mind and took up residence in my thinking for too long. Then…… lemonade. I am totally jazzed with Rebecca. She’s beautiful, fun, totally on the same page with me. My real estate business is branching out and flourishing in many new ventures I never thought of before. Life is uncertain, but restarts and second chances are like bringing a new child into the world. Another dear couple of ours lost a child shortly after the birth… it was devastating on them. Two years later, they gave birth to another child, healthy and doing well. The new child does not replace the lost child, but it gives hope and a whole new set of emotions and experiences not expected but totally enjoyed. And restarts...
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