Comparable? What does that mean?
Comparable properties are called comps
HomeWise will pull comparable properties from your local MLS at your request. We will then review them with you to help you decide on the right listing price for your property. This is included in your listing purchase.
Real estate comparables – or “comps” – are comparable properties in a specific area you want to buy or sell. Comps are used to determine the value of a home by comparing it to similar properties sold in the neighborhood. If no comps are available in the same neighborhood, an agent may pull comps from a similar area.
For example:
If you have a three-bedroom, two-bathroom house with 1,500 square feet of living space, finding homes with similar stats is a good way to estimate your property’s value.
If you’re looking to buy and don’t want to pay too much, finding good comps in the area can help you understand what the home is worth before you make an offer. Real estate comps are all about determining value, which can be helpful for various purposes across the various facets of real estate, from buying and selling to investing and making housing market predictions.
Who Uses Real Estate Comparables?
Real estate comps can be helpful for a variety of real estate professionals as well as members of the general public who are on the hunt for houses. Comparable sales can provide invaluable insights toward making the best decision regarding where to live or how you provide the best possible service to your clients. Let’s look at how house comps can be helpful to people from virtually all walks of life.
Comparables for Home Buyers
Comps are an excellent resource for buying a house. Real estate comps can provide valuable knowledge for house hunters who think they’ve found the home of their dreams. Once you find a property, researching similar properties in the area helps verify that the listing price is fair. This is invaluable when fine-tuning your offer amount and provides a way to guide you when negotiating a final price.
Home Sellers
Real estate comparables provide a few critical insights when selling your home. Understanding the prices of similar homes in the area will help you decide how to handle pricing yours. Another key benefit is it can help provide clues on what selling points to highlight when you list your house.
Appraisers
One of the most important steps to completing the sale of a home is the appraisal. Usually initiated by the buyer’s lender, calls a professional appraiser to determine the house’s market value. An appraiser relies on comps and several other factors to determine an accurate value of a property. This makes comps one of the most critical processes for real estate transactions.
Real Estate Agents
Agents use the MLS (multiple listing service) to pull comps for comparative market analysis. This allows them to give the best advice possible to their clients, whether they’re buying or selling property.
What sellers need to know about comps.
If you have any questions please email Sharon or call: 614-432-7325
Email: Sharon@homewisemls.com