Comps, or comparative market analyses, are an important part of the real estate process. They help you determine the value of a property to ensure you make the right offer. Here’s what you need to know about real estate comps.
What are real estate comps?
Real estate comps are similar properties in the same area that have recently sold or are currently on the market. By using these comparable sales, you can determine a property’s value.
Real estate comps are based on the idea that a buyer is willing to pay more for a home if there are other similar homes in the area with higher prices. This helps you identify an appropriate price range for your property so that you don’t overpay or sell too low.
How do you find real estate comps?
There are various ways you can find real estate comps. One of the most popular methods is to use a website or apps like Zillow, Trulia or Realtor.com. These services provide detailed information about recently sold homes in your area and allow you to filter search results by location, price range, and other criteria.
You can also use local real estate agents to help you find comps. Agents have access to the Multiple Listing Service (MLS) and can provide detailed information about recently sold homes in your area. This information will be more accurate than what is available through public websites, but it may cost more if you need a real estate agent’s assistance.
In addition to websites and real estate agents, you can also look at public records to find comps. Public records will provide information about the sales price of recently sold homes in your area, but may not have as much detail as what is available through websites or agents.
Once you’ve gathered comps, it’s essential to evaluate them carefully. Consider the age of the properties, their condition, and any other differences that might affect the price. Then you may use this information to make a more informed decision about what price to offer for a property.