Real estate comps are one of the best techniques used to price a property accurately. Traditionally reserved for appraisers and real estate agents, sellers can now have access to this useful real estate tool. The trick, of course, is to get the right information.
Today, we’ll talk about real estate comps, what they are, and how you can use them. We’ll then delve into how to get them, and better alternatives if you can’t do that.
What are Real Estate Comps?
Real estate comps, or house comps, are one of the ways in which realtors and appraisers can determine the value of your home. They do this by getting three or more comparable home sales in the area that match your property in specific criteria, like area and condition.
The logic behind home comps is simple. By looking at how much others were willing to pay for homes similar to yours, there’s a pretty good chance that they will also pay for about the same for your home.
You can use any house that’s listed in a Multiple Listing Service (MLS) as a basis for your comps, whether it’s on the market or about to be sold. However, those properties that have already been sold are the best candidates for real estate comparable.
The Importance of Real Estate Comps in Your Area
Real estate comps are one of the more reliable ways the real estate industry uses to price a property correctly.
At the minimum, it can give you a benchmark on where to begin pricing your home. This is especially useful if you sell your home without a realtor, as it can give you a reasonable price estimation. Even if you plan to hire a real estate agent, knowing about comps can help you become more educated and aware of their price recommendations.
Buyers can use house comps to determine the right offer to give to a seller. It ensures that they are not overpaying for the property they are interested in purchasing.
Some buyers or lenders will also hire an appraiser to determine the exact value of a home before closing the deal. More often than not, they will use comps to arrive at an accurate appraisal.
How to Assess Real Estate Comps for Your House
Finding the perfect house comps in your area is key to landing accurate estimations with this method. To do this, you must systematically evaluate each listing using set criteria.
First, limit your house comps to only those that are near your property, ideally around a quarter mile. Next, look at when the houses were sold. They must be fairly recent, best if within the last three to six months. This ensures the price is still reflective of the current market situation.
After that, you then carefully look at the physical features of the house and see if they match up reasonably with yours. Include basic things like the area of the house, general condition, and the number of rooms.
Proximity to desirable features can also impact price. These often include schools, public transportation, malls, and natural features like parks or waterfront views.
Finally, you can check the price per square foot of the property to get some insight into how the house was priced.
Finding Real Estate Comps on Your Own
Advantages
If you happen to have access to real estate comps in your area, then you’ll have a much higher chance of pricing your house without the experience of a realtor. If you plan to sell the house by owner, this is a requirement. You’ll also get to avoid the cost of hiring a real estate agent so that you can pocket more of the profit from a sale.
Disadvantages
The most significant disadvantage of finding comps on your own is that it can be challenging. MLS, which is the source of comp data, is often authorized to give comps only to licensed agents and realtors.
Even if you can befriend a real estate agent, you might not be getting up to date information. The market changes rapidly, and only direct access to the MLS can give you accurate comp information.
The Easiest Way to Find Home Comps in Your Area
The quick answer is that there is no easy way to get real estate comps in your area. Your best bet would be to hire a real estate agent, but that involves another set of complicated processes. Not to mention these professionals take a cut from your profits.
At 365 Property Buyers, we can thoroughly evaluate your house, as-is, and give you a fair cash offer on your home. We buy houses for cash and have extensive experience helping homeowners sell their house fast.
There’s no need trying to spend days trying to compare your house with other properties because we look at real estate comps to give you a fair cash offer. Since we are a high-tech real estate investment firm with years of experience, you get the most accurate pricing without the hassle of finding real estate comps or hiring a realtor.
Ready to sell your house without the hassle of the traditional real estate selling process? Get in touch with us today and we’ll give you a fair cash offer in as little as 10 minutes to get you on the road to selling your house fast! (501)369-0365
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