The most valuable types of Free Real Estate Market Analysis Tools aren’t worth their salt if you don’t know how to use them. In this article I want to discuss the advantages of using Free Real Estate Market Analysis Tools, an outline of some very effective ones, and share with you a few tips for making the most of these tools.
Are you thinking about buying or selling a real estate property? One of the top questions I get asked is what are the best websites that I use to analyze the market value of homes. The following are several free real estate market analysis tools, calculators, and websites that will help you with your home buying buying decision.
STATISTICAL ATLAS
This tool can be used to verify a wide number of Demographics, Income and Education statistics of specific areas for given markets. This can be especially useful for understanding household incomes and if projected property rents are reasonable in comparison.
BUREAU OF LABOR STATISTICS
An official website of the United States government, this site provides information on a wide range of topcis to include Inflation, employment wages, unemployment rates and even consumer expenditures.
CBRE CAP RATE MAP
Every year CBRE puts out Cap Rate Survey reports exploring cap rates for commercial real estate across the United States. In the above link, they have added this information to an interactive map allowing an investor to see how cap rates are doing in major cities as well as trends for that year. The official Cap Rate Survey for 2019 H2 can be found here.
Roofstock Cloudhouse
This tool by Roofstock provides an easy way to view insights on a given property. All you have to do is enter the property address and it provides a ton of valuable data that will help you determine the property’s potential as an investment.
First, it verifies basic facts such as year built, square feet, and number of bedrooms/bathrooms. Then as you dive a little deeper it reveals neighborhood ratings, location metrics (like median home value and income levels), and financial metrics (like Cap rate, gross yield, and cash flow).
The best feature of Cloudhouse, in my opinion, is the ability to toggle and modify all of the financial metrics of the property like purchase price, downpayment, and expenses. Being able to toggle numbers and make updates, will help you when it comes to putting in offers.
You’ll easily be able to determine the maximum price you’d be willing to pay, which depends on your investment criteria and it’ll help you during the negotiation period. If you’re looking for a quick, simple, and user-friendly tool, Cloudhouse is for you.
Roofstock rental property analysis spreadsheet
If you want something a little more simple, but that still packs a powerful punch, check out the free rental property analysis spreadsheet that Roofstock offers. It’s essentially an Excel spreadsheet where you can easily plug in numbers to determine investment potential.
What I love most about this spreadsheet is the Purchase Decision indicators, which display a snapshot showing if the deal lives up to the specific data-driven metrics you choose. For example, you can plug in a minimum cap rate, minimum cash on cash return, minimum monthly cash flow, along with many other metrics, and once you complete the spreadsheet it will conveniently display if the deal matches those standards or not.
In addition to the snazzy Purchase Indicators, you can analyze lending terms and costs, the cost to close, and equity, along with a ton of other valuable metrics.
RentZend
This is a newer calculator that I was only recently introduced to. After inputting your property address it populates a number of important data points needed to assess an investment. One aspect I like about this analysis tool is they have a very simple “Tax Benefits” section which displays the annual depreciation and loan interest you can utilize for tax purposes.
The one downside I’ve found, however, is that it pulls data from Zillow, which can often be inaccurate. For example, I analyzed one of my properties in Indianapolis and it calculated property taxes to be $1,000 when they are actually closer to $2,600. Luckily, you can easily edit all of the metrics needed to analyze, so as long as you know the accurate income and expense numbers on the subject property you’ll be good!
Bankrate – for estimating mortgage payments
Your go-to resource to check mortgage rates and payments should be your lender, but if you need a quick resource to verify the numbers, Bankrate.com is my recommended platform. Input home price, down payment percentage, and interest rate and you’ll be able to then verify monthly mortgage expenses which will be critical to your overall investment analysis.
They’ll even give you the full amortization schedule, so you can see just how much interest you’ll be paying the first few years.
FEMA – for reviewing flood zones
Newer real estate investors may not understand the importance or need to review flood zones. However, if a property you purchase ends up being in a flood zone, generally your insurance costs will be higher. This can be a major curveball and added expense if you are caught off guard.
Preserve your cash flow, and take the quick two minutes to search flood zones by using this platform: https://msc.fema.gov/portal/search
Buildium
Built specifically for real estate analysis, this tool can help real estate agents to accurately ascertain the condition of assets before and after sale. Buildium is scalable hence can be applied in small and large companies as well. With some built-in accounting tools, this software can identify and record payments, process fees, perform refunds and record deposits. This tool can also handle payments made through various media such as credit cards, bank account deposits as well as checks. The viability of individual properties can be presented through an intuitive dashboard. In addition to that, additional data about asset sales and purchases can be recorded in transaction notes. An outstanding feature of this real estate analysis software is that it can perform automation of real estate business processes. Furthermore, you can use Buildium to stay in touch with your company’s team of real estate agents. This software is accessible through a free trial before compulsory payment is required for further use.
Pros
- It is tailor-made for real estate analysis
- The software can perform accounting activity
- It automates business processes for boosted efficiency
- This software can be used for free through a trial
Cons
- It cannot be integrated with other real estate software
RealNex
Developed to be a complete suite of tools, this software product provides comprehensive features that you can utilize throughout the day. RealNex is a core CRM that provide you with a collection of real estate information. This data is provided in hand as well as in the Cloud. Hence, you can make informed real-estate investment decisions. The data gleaned by this software is stored within a database. Easy to use, scalable and flexible, this data repository helps you to comprehend market conditions, create and foster relationships as well as grow your business. Furthermore, RealNex has a feature which is known as a Transaction Manager. It automatically oversees correspondence between you and your clients so as to ensure smooth interaction during purchase or sale. You can try this real estate analytics software out at no cost through a demo account.
Pros
- It provides client management capability through a CRM module
- The software has a built-in database
- It is scalable
- You can try it for free through a demo
Cons
- It is expensive to maintain
RealData
Real estate professionals can use this software so as to evaluate potential investments thoroughly before transaction. Since it is highly versatile, RealData can be used by investors or developers. This software solution can determine the cash value of a property, evaluate feasibility, source financing and plan the cash flow on a monthly basis. Furthermore, you can use RealData to calculate the monthly cash flow of your real estate business. This gives you the financial and operational condition of your enterprise. The core objective of this software is to provide you with high quality information so as to guide your investment decisions. It is available for free through a demo.
Pros
- It is a versatile software
- This software can determine multiple cash-based factors
- You can use it to determine the financial condition of your business
- It is available at no cost through a trial
Cons
- The trial period is short
Conclusion
Have you ever wondered how many houses were available to rent in a particular neighborhood? Or, have you ever thought about which suburbs were the most popular with home buyers? Well, then you should definitely check out these free real estate market analysis tools.