How To Pull Comparables On MLS: A Detailed Guide

Pulling comparables on MLS (Multiple Listing Service) is a critical skill for real estate professionals. COMPARE.EDU.VN offers a robust platform to streamline this process, providing you with the tools and insights necessary to make informed decisions and provide accurate property valuations, while identifying real estate comps. Understanding how to effectively utilize the MLS to find comparable properties is essential for creating accurate Comparative Market Analyses (CMAs), negotiating deals, and advising clients, so let’s dive in.

1. Understanding the Basics of MLS and Comparables

Before we delve into the specifics of pulling comparables on MLS, it’s crucial to understand what MLS is and why comparables are so important.

1.1 What is MLS?

MLS stands for Multiple Listing Service. It is a database established by cooperating real estate brokers to provide data about properties for sale. Real estate agents use MLS to see each other’s listings of properties for sale with the goal of connecting homebuyers to sellers. MLS includes a mechanism for sharing commissions if another broker sells a property listed in MLS.

1.2 Why are Comparables Important?

Comparables, often referred to as “comps,” are properties similar to the subject property that have recently sold in the same area. They are used to determine the fair market value of a property. Here’s why they matter:

Accurate Pricing: Comps help in setting a realistic listing price for sellers and making informed offers for buyers.
Negotiation Power: Real estate agents can use comps to support their pricing strategies during negotiations.
Investment Decisions: Investors rely on comps to assess the potential return on investment for a property.
Appraisals: Appraisers use comps to determine the value of a property for mortgage lending purposes.

1.3 Key Characteristics of Good Comparables

To ensure the accuracy of your CMA, it’s essential to select comparables that share key characteristics with the subject property. These include:

Location: Ideally, comps should be located in the same neighborhood or a similar area.
Property Type: Compare apples to apples. Single-family homes should be compared to other single-family homes, condos to condos, etc.
Size and Layout: Look for properties with similar square footage, number of bedrooms and bathrooms, and overall layout.
Age and Condition: Newer properties should be compared to newer properties, and those in excellent condition to others in similar condition.
Sale Date: Recent sales (within the last 3-6 months) provide the most accurate data, helping to find real estate comparables.
Features and Amenities: Consider features like pools, garages, updated kitchens, and other amenities that can impact value.

2. Accessing MLS and Navigating the System

Access to MLS is typically restricted to licensed real estate professionals who are members of a local real estate board or association. Here’s how to access and navigate the system:

2.1 Becoming an MLS Member

Get Licensed: Obtain a real estate license in your state or region.
Join a Real Estate Board: Affiliate with a local real estate board or association that provides access to MLS.
Pay Membership Fees: MLS access usually requires ongoing membership fees, which vary depending on the location and services offered.

2.2 Logging into MLS

Once you’re a member, you’ll receive login credentials to access the MLS system. This usually involves:

Visiting the MLS Website: Navigate to the MLS website provided by your real estate board.
Entering Credentials: Input your username and password.
Two-Factor Authentication: Some MLS systems may require two-factor authentication for added security.

2.3 Understanding the MLS Interface

The MLS interface can vary depending on the provider, but most systems include the following features:

Search Function: Allows you to search for properties based on various criteria.
Map View: Displays properties on a map, making it easier to identify comparables in a specific area.
Listing Details: Provides detailed information about each property, including photos, descriptions, and sales history.
CMA Tools: Some MLS systems include built-in CMA tools to help you analyze comparables.
Reporting: Allows you to generate reports on market trends and property values.

3. Step-by-Step Guide on How to Pull Comparables on MLS

Now, let’s walk through the process of pulling comparables on MLS, complete with strategies for refining your search and interpreting the data.

3.1 Defining Your Subject Property

Before you start searching for comparables, you need to have a clear understanding of the subject property. Gather the following information:

Address: The exact address of the property.
Property Type: Is it a single-family home, condo, townhome, or something else?
Square Footage: The total living area of the property.
Number of Bedrooms and Bathrooms: How many bedrooms and bathrooms does it have?
Age and Condition: When was the property built, and what is its overall condition?
Features and Amenities: Does it have a pool, garage, updated kitchen, or other notable features?

3.2 Initiating Your Search

Start by logging into your MLS system and navigating to the search function. Here’s how to conduct an effective search:

Location: Enter the address of the subject property and specify a search radius. Start with a small radius (e.g., 0.25 miles) and gradually increase it if needed.
Property Type: Select the appropriate property type (e.g., single-family home, condo).
Price Range: Enter a price range based on your initial estimate of the property’s value.
Square Footage: Specify a square footage range that is similar to the subject property.
Bedrooms and Bathrooms: Select the same number of bedrooms and bathrooms as the subject property.
Sale Date: Limit your search to properties that have sold within the last 3-6 months.

3.3 Refining Your Search

Once you’ve initiated your search, you may need to refine it to find the best comparables. Here are some strategies:

Adjusting the Radius: If you’re not finding enough comparables, increase the search radius. However, be cautious about going too far, as properties farther away may not be as relevant.
Modifying the Price Range: If the initial price range is too narrow, widen it to include more potential comparables.
Expanding the Sale Date: If there haven’t been many recent sales, you may need to extend the sale date range.
Using Keywords: Use keywords to search for specific features or amenities that are important to the subject property (e.g., “updated kitchen,” “pool”).

3.4 Analyzing the Search Results

After refining your search, it’s time to analyze the results and select the best comparables. Here’s what to look for:

Review Listing Details: Examine the details of each listing, including photos, descriptions, and sales history.
Compare Key Characteristics: Compare the key characteristics of each property to the subject property, paying close attention to location, size, condition, and features.
Verify Data Accuracy: Double-check the accuracy of the data, especially square footage, number of bedrooms and bathrooms, and sale date.
Consider Market Trends: Take into account any recent market trends that may have impacted property values in the area.

3.5 Selecting the Best Comparables

Aim to select at least three to five comparables that are the most similar to the subject property. Here are some tips:

Prioritize Location: Properties in the same neighborhood are generally the best comparables.
Look for Recent Sales: Recent sales provide the most accurate data.
Consider Adjustments: Be prepared to make adjustments to the comparable properties to account for differences in features, condition, and other factors.
Consult with Other Agents: If you’re unsure about which properties to select, consult with experienced agents in your area.

3.6 Non-MLS Comparables

If your MLS allows it, you can add non-MLS comparables to a CMA by using the Non-MLS Comparables tab. If an appropriate non-MLS comparable property is already available in the list, select it and click Add to CMA.

To add a new non-MLS comparable property, click Create New Comparable. Enter information about the comparable property. Use the Sharing field to specify whether members of your office or company can use the comparable in their CMAs. When you are finished entering information, click Save This Comparable. Select the new comparable and click Add to CMA. You can also edit or delete an existing non-MLS comparable from this page.

4. Making Adjustments to Comparables

Once you’ve selected your comparables, you’ll need to make adjustments to account for differences between the properties. This is a crucial step in creating an accurate CMA.

4.1 Understanding the Adjustment Process

The goal of making adjustments is to bring the comparables in line with the subject property. Adjustments are typically made for the following factors:

Location: Adjust for differences in location, such as proximity to amenities or schools.
Size: Adjust for differences in square footage.
Condition: Adjust for differences in the condition of the properties.
Features: Adjust for differences in features, such as pools, garages, or updated kitchens.
Sale Date: Adjust for changes in market conditions since the comparable property sold.

4.2 Common Adjustment Guidelines

While the specific adjustments will depend on the properties and market conditions, here are some general guidelines:

Location: Adjustments for location can range from a few hundred dollars to several thousand dollars, depending on the desirability of the area.
Size: Adjustments for size are typically based on the price per square foot in the area.
Condition: Adjustments for condition can range from a few hundred dollars to several thousand dollars, depending on the extent of the repairs or renovations needed.
Features: Adjustments for features are based on the value of the feature in the market. For example, a pool may add $5,000 to $10,000 to the value of a property.
Sale Date: Adjustments for sale date are based on the rate of appreciation or depreciation in the market.

4.3 Making the Adjustments

To make the adjustments, follow these steps:

Identify Differences: Identify the key differences between the subject property and each comparable.
Determine Adjustment Amounts: Determine the appropriate adjustment amounts for each difference, using market data and your professional judgment.
Apply Adjustments: Apply the adjustments to the sale price of each comparable, either adding or subtracting the adjustment amount.
Calculate Adjusted Values: Calculate the adjusted values of each comparable.

4.4 Example of Adjustments

Let’s say you’re comparing a subject property to a comparable that is 100 square feet larger and has an updated kitchen. Here’s how you might make the adjustments:

Subject Property: 1,500 square feet, standard kitchen
Comparable Property: 1,600 square feet, updated kitchen, sold for $300,000
Adjustment for Size: -$15 per square foot (based on market data) x 100 square feet = -$1,500
Adjustment for Kitchen: -$5,000 (based on market data)
Adjusted Value of Comparable: $300,000 – $1,500 – $5,000 = $293,500

5. Creating a Comparative Market Analysis (CMA)

After making the adjustments, you’re ready to create a CMA. This report will provide an estimate of the fair market value of the subject property based on the adjusted values of the comparables.

5.1 Compiling the Data

Gather the following information:

Subject Property Details: Address, property type, square footage, number of bedrooms and bathrooms, age, condition, and features.
Comparable Property Details: Address, sale price, adjustments, and adjusted values for each comparable.
Market Data: Information on recent market trends, appreciation rates, and inventory levels.

5.2 Calculating the Value Range

Calculate the value range by taking the average of the adjusted values of the comparables. For example, if you have three comparables with adjusted values of $290,000, $295,000, and $300,000, the value range would be:

($290,000 + $295,000 + $300,000) / 3 = $295,000

5.3 Creating the CMA Report

Use the CMA tool in your MLS system or create a custom report using a word processor or spreadsheet program. The report should include:

Cover Page: Include the address of the subject property, the date of the analysis, and your contact information.
Executive Summary: Provide a brief overview of the findings, including the estimated value range of the subject property.
Subject Property Details: Include detailed information about the subject property.
Comparable Property Details: Include detailed information about each comparable, including photos, descriptions, sale prices, adjustments, and adjusted values.
Market Analysis: Provide an overview of the market trends and conditions that may impact property values in the area.
Conclusion: Summarize your findings and provide a recommendation for the listing price or offer price.

5.4 Presenting the CMA

When presenting the CMA to your client, be sure to:

Explain the Process: Walk them through the process of selecting comparables and making adjustments.
Highlight Key Factors: Emphasize the key factors that influenced your valuation, such as location, size, condition, and features.
Provide Context: Explain the market trends and conditions that may impact property values in the area.
Answer Questions: Be prepared to answer any questions your client may have about the CMA.

6. Advanced Techniques for Pulling Comparables

In addition to the basic techniques, there are several advanced strategies that can help you pull even more accurate and relevant comparables.

6.1 Using Advanced Search Filters

Most MLS systems offer advanced search filters that allow you to narrow your search based on specific criteria. These filters can include:

Days on Market: Search for properties that have been on the market for a certain number of days.
Concessions: Search for properties where the seller offered concessions, such as paying for closing costs.
Financing Type: Search for properties that were purchased with a specific type of financing, such as FHA or VA loans.
Listing Agent: Search for properties listed by a specific agent or brokerage.

6.2 Analyzing Sales Trends

Pay attention to sales trends in the area, such as the average sale price, days on market, and sale-to-list price ratio. This information can help you identify patterns and make more accurate adjustments to your comparables.

6.3 Considering Distressed Sales

Distressed sales, such as foreclosures and short sales, can impact property values in an area. Be sure to consider these sales when pulling comparables, but be cautious about using them as the primary basis for your valuation.

6.4 Utilizing Public Records

Public records, such as tax assessments and property records, can provide additional information about the subject property and potential comparables. These records can be used to verify data and identify potential issues that may impact property values.

6.5 Networking with Other Agents

Networking with other agents in your area can provide valuable insights into the local market and help you identify potential comparables. Attend local real estate events and join online forums to connect with other agents and share information.

7. Common Mistakes to Avoid When Pulling Comparables

To ensure the accuracy of your CMA, it’s important to avoid common mistakes when pulling comparables.

7.1 Relying Too Heavily on Automated Valuations

Automated valuation models (AVMs), such as Zestimates and other online tools, can be a useful starting point for your analysis, but they should not be relied upon as the sole source of information. These models are based on algorithms and may not take into account all of the unique factors that can impact property values.

7.2 Ignoring Property Condition

Property condition is a critical factor that can significantly impact property values. Be sure to carefully assess the condition of the subject property and potential comparables, and make appropriate adjustments.

7.3 Overlooking Market Trends

Market trends can have a significant impact on property values. Be sure to stay up-to-date on the latest market trends in your area and take them into account when pulling comparables.

7.4 Failing to Verify Data

It’s essential to verify the accuracy of the data you’re using, especially square footage, number of bedrooms and bathrooms, and sale date. Inaccurate data can lead to inaccurate valuations.

7.5 Not Making Adjustments

Failing to make adjustments for differences between the subject property and the comparables can lead to inaccurate valuations. Be sure to make appropriate adjustments for location, size, condition, features, and sale date.

8. How COMPARE.EDU.VN Can Help

COMPARE.EDU.VN is your ultimate resource for comparing real estate properties and making informed decisions. Our platform offers a comprehensive suite of tools and information to help you pull comparables on MLS with ease and accuracy.

8.1 Key Features of COMPARE.EDU.VN

Detailed Property Comparisons: Access in-depth comparisons of properties, including features, amenities, and market data.
Advanced Search Filters: Utilize advanced search filters to narrow your search and find the best comparables.
Interactive Maps: Explore interactive maps to visualize properties and identify comps in specific areas.
Market Analysis Tools: Leverage market analysis tools to stay up-to-date on the latest trends and conditions.
CMA Templates: Use our customizable CMA templates to create professional-looking reports.
Expert Insights: Benefit from expert insights and analysis to make informed decisions.

8.2 Benefits of Using COMPARE.EDU.VN

Save Time and Effort: Streamline the process of pulling comparables and creating CMAs.
Improve Accuracy: Access reliable data and expert insights to improve the accuracy of your valuations.
Make Informed Decisions: Gain a comprehensive understanding of the market to make informed decisions.
Enhance Client Service: Provide your clients with professional-quality CMAs and expert advice.

8.3 Getting Started with COMPARE.EDU.VN

Ready to get started with COMPARE.EDU.VN? Here’s how:

Visit our Website: Go to COMPARE.EDU.VN to explore our platform.
Create an Account: Sign up for a free account to access our basic features.
Upgrade Your Membership: Upgrade to a premium membership for access to advanced tools and features.
Start Comparing: Start pulling comparables and creating CMAs with ease.

9. The Future of Pulling Comparables on MLS

The real estate industry is constantly evolving, and the way we pull comparables on MLS is changing as well. Here are some trends to watch for:

9.1 Artificial Intelligence (AI)

AI is being used to automate many aspects of the real estate industry, including pulling comparables. AI-powered tools can analyze vast amounts of data and identify potential comparables with greater speed and accuracy than humans.

9.2 Big Data

The increasing availability of data is transforming the way we analyze real estate markets. Big data tools can be used to identify patterns and trends that would be impossible to detect using traditional methods.

9.3 Virtual Reality (VR)

VR is being used to create immersive property tours that allow buyers to experience a property from anywhere in the world. This technology can help buyers make more informed decisions and reduce the need for in-person showings.

9.4 Blockchain

Blockchain technology is being used to create secure and transparent real estate transactions. This technology can help reduce fraud and streamline the closing process.

9.5 Mobile Technology

Mobile technology is making it easier for real estate agents to access MLS data and communicate with clients on the go. Mobile apps can be used to search for properties, create CMAs, and manage transactions from anywhere.

10. Frequently Asked Questions (FAQs)

Here are some frequently asked questions about pulling comparables on MLS:

What is the best way to find comparables on MLS?
- The best way to find comparables is to use a combination of search filters, map views, and market analysis tools.
How many comparables should I use in a CMA?
- Aim to use at least three to five comparables in your CMA.
How do I make adjustments to comparables?
- Make adjustments for differences in location, size, condition, features, and sale date.
What is a good sale-to-list price ratio?
- A good sale-to-list price ratio is typically around 95% or higher.
How often should I update my CMA?
- Update your CMA regularly, especially if market conditions are changing rapidly.
Can I use expired listings as comparables?
- Expired listings can provide some insights, but they should not be used as the primary basis for your valuation.
What is the difference between a CMA and an appraisal?
- A CMA is an estimate of value prepared by a real estate agent, while an appraisal is a professional valuation prepared by a licensed appraiser.
How do I find out about upcoming listings?
- Network with other agents and monitor the MLS for new listings.
What are the most important factors to consider when pulling comparables?
- The most important factors to consider are location, size, condition, features, and sale date.
How can COMPARE.EDU.VN help me pull comparables on MLS?
- COMPARE.EDU.VN offers detailed property comparisons, advanced search filters, interactive maps, market analysis tools, CMA templates, and expert insights to help you pull comparables with ease and accuracy.

In conclusion, mastering the art of pulling comparables on MLS is essential for success in the real estate industry. By understanding the basics of MLS, using advanced search techniques, making appropriate adjustments, and leveraging the resources available at COMPARE.EDU.VN, you can create accurate CMAs, provide valuable advice to your clients, and achieve your goals. Visit compare.edu.vn today at 333 Comparison Plaza, Choice City, CA 90210, United States or contact us via Whatsapp at +1 (626) 555-9090 to learn more about how we can help you succeed in the world of real estate comparisons.