Best Real Estate Comp Software in 2024

If you’ve ever invested in real estate, you’re probably aware that pulling real estate comps is an absolutely critical step in the home buying or home selling process. Properties in your area with similar features that have sold in the past three to six months can help you form an accurate estimate of what you should be listing your own property for. While there are numerous ways to go about pulling comps, utilizing online resources is often the easiest and most efficient way to do so. Below, we’ll take an in-depth look at the best real estate comp software in 2024. 

But, before we examine the best software to help you pull real estate comps, let’s first take a look at two basic questions: what exactly are real estate comps and what goes into pulling successful comps? 

What Are Real Estate Comps?

Real estate comps are comparable properties in a specific area that you are looking to buy or sell in. Comps can be used to determine the value of a potential investment property by comparing it to other homes in your area with similar features, such as size, age, condition, etc. 

If you’re looking to sell your property or if you’re in the market to buy, comps can help you find out exactly what you should be paying or spending on a house. Say you have a four bedroom, three bathroom home on an acre of land that you are looking to list. Finding homes in the area with similar features is a great place to start when estimating the value of the property like this.

Conversely, if you are looking to buy a three bed, three bathroom home that was built less than ten years ago, searching for similar properties in the area can help ensure that you don’t overpay.

What Goes into Real Estate Comps?

Now that we’ve established what real estate comps are and what they’re used for, what factors go into evaluating real estate comps? 

Location Plays A Big Factor in Real Estate Comps

Location is a huge factor to consider when thinking about buying or selling a property. Oftentimes, it serves as the number one reason that someone might move into a new home. If you are beginning a new job in a new area, location will obviously play a huge factor in what property you decide to buy or rent. A 900 square foot apartment in the middle of a large city may cost 3x as much as a 2,000 square foot home in a more rural area, simply because of location. 

Age Can Also Play A Role in Real Estate Comps

The age of a home can play a significant part in evaluating its value. Typically, new homes will have higher value and do not require as much maintenance and upkeep as an older home. If two properties are similar in location, size, and layout, age can act as the determining factor for which is valued more. 

Condition

A property’s condition is another critical point to consider when comparing its value to other properties in the area. For example, if one home has mold growing underneath the home in the crawlspace, and another has a completely encapsulated, moisture-free crawlspace, one’s value will be significantly higher than the others. Sometimes, age and condition go hand-in-hand with homes and are directly correlated, however, that’s not always the case. So, be sure to take the property’s condition into account when evaluating real estate comps.

For example, if you’re looking for a property to fix and flip, you should look at the comps for properties that were in similar shape in that area.

Size (Square footage and lot size) Can Impact A Property’s Comp

Square footage and lot size has a major impact on a property’s value. A home with an additional 500 square feet in comparison to another that may look similar, can account for tens, if not hundreds of thousands of dollars in value. 

Similarly, two comparable properties may have the exact same 2,000 square feet of space, but if one is sitting on 12 acres of land while the other is sitting on three acres, the property with the larger lot size is going to be worth much more. Location also comes into play when factoring in lot size, because five acres of land in a busy, urban population may be worth far more than five acres in a rural setting. 

Timeframe

When searching for real estate comps, try looking for comparable properties that have been sold within the last three to six months. Because the market can change so quickly, it’s important to look at the value of homes that have been sold recently. A comparable property with the same square footage, number of bedrooms, and lot size could be used, but if it was sold two years ago, it’s likely the value has changed since then.

Renovations

Renovating and upgrading your home is a great way to increase your property’s value. When running real estate comps, be sure to look for properties with similar renovations and finishes throughout.

Now that you know what real estate comps are and what goes into real estate comps, let’s take a look at what to look for in real estate comp software.

What to Look for in Real Estate Comp Software: A Deep Dive

In 2024, the landscape of real estate comp software has evolved significantly, with cutting-edge features designed to streamline the valuation process. The effectiveness of these tools lies in their ability to simplify complex data analysis, making accurate information readily accessible to real estate professionals. Here’s a closer look at the essential features that set apart the best real estate comp software:

• Comprehensive Filters: The ability to filter data accurately is crucial for pulling relevant comps. Top-tier software provides a wide range of filtering options, including property type, square footage, number of bedrooms and bathrooms, lot size, and more. These comprehensive filters allow users to narrow down their search effectively, ensuring that the comps they pull are truly comparable to the property in question.
• Easy Navigation: User-friendly interfaces are a hallmark of the best real estate comp software. Intuitive design ensures that users can navigate the platform easily, accessing the information they need without unnecessary complexity. This ease of use is vital for maximizing efficiency, enabling users to pull comps quickly and effectively.
• Up-to-Date, Accurate Data: The value of real estate comp software hinges on the accuracy and timeliness of its data. Leading platforms ensure their databases are constantly updated, reflecting the latest market transactions and trends. This commitment to data accuracy provides users with confidence in their analysis, enabling informed decision-making.

The Best Real Estate Comp Software in 2024

Exploring various real estate comp tools and software is important for anyone involved in the real estate market, whether you’re a professional realtor, an investor, or a homeowner considering selling your property. Each platform offers unique features and data that can help users make informed decisions. Let’s delve into what each of these tools has to offer:

The Best Real Estate Comp Software in 2024

Exploring various real estate comp tools and software is important for anyone involved in the real estate market, whether you’re a professional realtor, an investor, or a homeowner considering selling your property. Each platform offers unique features and data that can help users make informed decisions. Let’s delve into what each of these tools has to offer:

MLS (Multiple Listing Service)

• Overview: The Multiple Listing Service (MLS) is a comprehensive system used by real estate brokers to share information about properties on the market. It’s the most detailed and accurate source of real estate data, providing access to a wide array of information, including listings, sales data, historical price information, and more.
• Key Features: Direct integration with real estate brokerages, up-to-date listings, detailed property information, and exclusive listings that might not be available on public platforms.
• Best For: Real estate professionals who require the most current and comprehensive data for market analysis and property valuation.

Zillow

• Overview: Zillow is one of the most popular real estate marketplaces, offering a wide range of tools and information for buyers, sellers, and real estate professionals. Its Zestimate feature is particularly well-known, providing an estimated market value for millions of homes across the United States.
• Key Features: Zestimate for property valuations, user-friendly interface, extensive database of listings, including for sale and rent, and historical price data.
• Best For: Homebuyers, sellers, and casual investors looking for a broad overview of market conditions and property values.

Redfin

• Overview: Redfin is both a real estate brokerage and an online platform, offering detailed property listings along with market analysis tools. Redfin is known for its user-friendly interface and accurate, up-to-date data sourced directly from MLS listings.
• Key Features: Direct MLS integration, comprehensive market analysis tools, Redfin Estimate for property valuations, and user-friendly search functionality.
• Best For: Buyers and sellers who want accurate, real-time data on listings and market conditions, along with professional assistance from Redfin agents.

Realtor.com

• Overview: Realtor.com is a real estate listings website that offers a wide range of properties for sale and rent, sourced directly from MLS databases. It’s known for its accurate and up-to-date listings, along with tools to help users calculate mortgage payments and find local real estate agents.
• Key Features: Direct MLS listings, detailed property information, mortgage calculators, and agent directories.
• Best For: Homebuyers and sellers looking for accurate listings and resources to assist in the home buying or selling process.

Eppraisal

• Overview: Eppraisal offers a quick and easy way to get property valuations, along with data on neighborhood market trends. It’s a useful tool for getting a snapshot of a property’s potential market value and how it compares to other properties in the area.
• Key Features: Free property valuation estimates, market trend data, and comparisons to nearby properties.
• Best For: Homeowners and investors seeking quick property valuations and market trend analysis.

Trulia

• Overview: Trulia goes beyond simple property listings to offer detailed insights into neighborhoods, including crime rates, school ratings, and community features. It’s an excellent resource for buyers looking to understand the broader context of a potential home purchase.
• Key Features: Detailed neighborhood insights, user-friendly search functionality, and comprehensive listings for sale and rent.
• Best For: Homebuyers interested in the lifestyle and community aspects of potential neighborhoods.

PropertyShark

• Overview: PropertyShark is known for its in-depth property data, offering detailed information on property ownership, zoning, permits, and valuation. It’s a valuable tool for serious investors and real estate professionals who need detailed background information on properties.
• Key Features: Comprehensive property reports, ownership records, detailed maps, and zoning information.
• Best For: Real estate investors and professionals who require detailed property data for analysis and decision-making.

Each of these platforms offers unique advantages depending on your specific needs, whether you’re looking for the most comprehensive data, detailed property valuations, or insights into neighborhood characteristics. By leveraging the strengths of these real estate comp tools and software, users can make well-informed decisions in the dynamic real estate market.

Final Thoughts on Best Real Estate Comps Software in 2024

With a plethora of real estate websites and resources available to the public, it’s easier than ever to find information on properties in your area to use when estimating the value of your home. In many cases, we even recommend utilizing more than one resource when pulling comps to ensure that your final numbers are as accurate as they can possibly be. 

FAQs on Real Estate Comps

What does “comps” stand for in real estate?

In real estate, “comps” is short for comparables. It refers to the practice of comparing similar properties to determine the value of a specific property. Comps are typically used to assess market trends, establish property prices, and in appraisals and assessments. They involve looking at properties that are similar in size, location, condition, and features that have been sold recently to establish a fair market value for a property of interest.

How do you pull comps?

Pulling comps involves several steps, focusing on identifying properties that closely match the one you’re evaluating. Here’s a simplified process:

• Identify the Criteria: Start by defining what makes a property comparable. This includes location, size, age, condition, and features.
• Use Real Estate Platforms: Utilize tools like MLS, Zillow, Redfin, or Realtor.com to find recently sold properties that match your criteria.
• Analyze the Data: Look at the sale prices, time on market, and any differences between the properties to adjust your valuation accordingly.
• Compile Your Findings: Gather data on several comps to establish a range of possible values for your property.

How do appraisers do comps?

Appraisers follow a systematic method to pull comps, which is more rigorous and standardized than the process for the average person or real estate professional. They:

• Access Professional Databases: Appraisers often use MLS and other professional databases to find accurate and up-to-date information.
• Apply Strict Criteria: They apply strict criteria to ensure that the comps are genuinely comparable in terms of location, size, condition, and other relevant features.
• Adjust for Differences: Appraisers make adjustments to the value of the comps based on any differences with the property being appraised, ensuring a fair and accurate valuation.
• Document the Process: The appraiser documents their process and findings in a detailed report, explaining how each comp was selected and adjusted.

Do comps matter in real estate?

Absolutely. Comps are crucial in real estate for several reasons. They help in:

• Determining Market Value: Comps are the most reliable way to determine the market value of a property.
• Pricing Properties: Sellers use comps to price their properties competitively.
• Appraisals: Comps are used in appraisals for loans and property sales.
• Investment Analysis: Investors use comps to assess the potential return on investment.

How do I pull comps like an appraiser?

To pull comps like an appraiser, you’ll need to adopt a detailed and methodical approach:

• Get Access to the Right Tools: While public tools like Zillow and Redfin are useful, accessing MLS through a real estate professional can provide more detailed information.
• Select Strictly Comparable Properties: Focus on properties that match closely in the most critical aspects – location, size, age, and condition.
• Make Adjustments: Learn how to make financial adjustments for differences between your property and the comps to arrive at a more accurate value.
• Consider Market Trends: Factor in current market trends affecting property values in your area.
• Document Your Process: Keep detailed records of the comps you’ve selected, the criteria used, and any adjustments made.

Understanding and effectively using real estate comps is a powerful skill in the real estate market, whether you’re buying, selling, or appraising properties. By following these guidelines, you can gain deeper insights into property values and market dynamics.