What are Comps in Real Estate Sales

What are comps in real estate? Comp sales are used by real estate agents and appraisers to formulate the value of a home. They're also useful for determining whether a house has increased or decreased in value over time. Without comps, buyers and sellers would have no information to rely on for understanding fair market value.

Knowing how to find out what a property sold for is the basis for determining the value of other similar homes. Let's look at how to find a home's value.

How Do I Calculate My Homes Value

Two of the most common ways to find out the value of a house are to hire a licensed appraiser of a real estate agent. An appraisal is done by a professional appraiser who will use market data to estimate the current value of the home. This method is generally considered the most accurate. However, it can take several weeks to complete.

Real Estate agents also use real estate comps as the basis for creating a comparable market analysis, commonly referred to as a CMA.

A comp is a recent sale of a similar home in the same neighborhood as yours. Both real estate agents and appraisers look at variables such as age, location, square footage, condition, and amenities to determine a property's market value.

How Long Does it Take to Sell My Property?

The time it takes to sell a home can vary depending on several factors including the time of year, supply and demand, the price for the home, and general economics. Pricing a home properly is one of the most vital factors in the time it takes to sell a home. Comps will be used to determine the right price for marketing a home.

You can expect a home to take longer to sell or not at all when priced incorrectly.

How Do I Know When to List My Home For Sale?

There are several things to consider when deciding whether or not to list your home for sale. You should first decide whether or not you need to sell right now. If you do need to sell, then you will need to determine how much money you need to make in order to cover the costs associated with selling your home.

You also need to think about the market conditions in your area. Are prices rising or falling? If market values are going down and you need to sell then listing right away would be important. On the other hand, if you don't need to move and market values are increasing every month, holding on might make sense. Speak to a local real estate agent to help maximize the best time to sell.

How Can I Find Out More About Comparable Properties?

To find out more about comparables on your own, you can visit Zillow.com. This website allows you to search for properties similar to yours by entering your address into the search bar at the top of the screen. Once you enter your address, you will see a map of the surrounding areas.

Click on any of the pins on the map to view details about each property. You can learn more about the property’s price, square footage, number of bedrooms, and more.

If you want to understand how particular comps are related to your property then reach out to a real estate agent.

Why Do We Need Comps?

Comparables are used to determine what a property is worth. If you plan to sell your home, knowing how much others sold for in the same neighborhood helps you decide whether the appropriate price. If you are buying a home, comps help you know the right offer to make.