Three Factors For Determining Real Estate Comps

Three Factors For Determining Real Estate Comps

Image titleWhether you are buying a new home or selling your old one, "comps," or comparable sales, are important. As a seller, they can be used as benchmarks to properly price your house. The last thing you want to do is undervalue it, which could end up losing you money, or overvalue it, which could make your property sit on the market for way too long. As a buyer, comps provide a ballpark figure that you can expect to pay in the current real estate market and, thus, help prevent you from overpaying for a property. The following are three things real estate agents keep in mind when looking at comps: 


Look at the Location

As a seller, one of the first things to consider when looking for comps is location. This means looking at homes sold in your neighborhood. The same goes for buyers, who should compare nearby houses for sale to determine their house's value. If you can't find comps from the same neighborhood, then keep other boundaries in mind, such as school districts. 


 When Was the Home Last Sold?

The real estate market fluctuates a lot over the years, which means values can rise and dip substantially over time. If you can, look at houses that were sold within the last six months for a good comp. Even better, look at pending sales. Pending sales are deals in place between buyers and sellers that haven't gone through yet, which means they are the most up-to-date comps you'll find. Obviously, pending sales are something you don't have access to on your own, so it's helpful to have the assistance of a real estate agent who does have access to that kind of information. 


What Are the Home's Features?

Location and time frame are huge factors in finding a good comp but so are the home's features. A one-bedroom, one-bathroom home is a bad comp for a three-bedroom, two-bathroom home. These aren't the only features that should be compared, though. A house with a luxury kitchen full of updated, energy-efficient appliances may sell for more than a house with a normal kitchen full of outdated appliances. Obviously, the odds that you'll find a perfect comp, whether you're a buyer or seller, are pretty slim when you consider that most houses have different features. It's something you should keep in mind, though, when evaluating comps to get a better understanding of how the home you want to buy or sell compares in terms of value.


Photo: © Cacaroot - iStockphoto


Stephanie Gonzalez Headshot
Author:
Phone: 214-454-4646
Dated: September 13th 2016
Views: 1,559
About Stephanie: About Halo We understand that for many people, buying or selling a home is probably the largest i...

Property Search








RSS Feed

View our latest blog posts in your RSS reader. Click here to access. RSS

Search Blog

Recent Blogs

Three Factors For Determining Real Estate Comps - Whether you are buying a new home or
10 High Schools In Frisco - I read a statistic that Frisco has g
Sep 6 Land For Sale 7 Acres Ennis TX - 7.01 Acres for sale in Ennis, TX$140
How Supply And Demand Impacts The Real Estate Market - http://goo.gl/HvdTVY

Saved Properties

This is a list of your favorite properties. We will email you if a property is reduced or leaves the market.

Click 'Save' to add a property to this list.

Register / Login

New & returning visitors please enter your information to login.

By clicking 'register' you are agreeing to our terms of use & giving us expressed written consent to contact you.

Questions? Comments? Complaints?

This message will go directly to the head of our team.

Location & Address

DeLynn Scott
825 Watters Creek Blvd. Suite 230
Allen, TX
972-489-6553
2144520590

Other Locations