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HomeLight’s Home Value Estimator is a good starting point that can provide an idea of what their home is worth. This free valuation tool analyzes key points about your home and consults top agents to zero in on your home’s value. Simply put, comps are a necessary part of real estate, whether you’re the seller trying to select a reasonable listing price or you’re the buyer trying to pinpoint a fair offer. Comps help sellers price their homes right, help buyers know how much to offer, and help appraisers estimate the value of a home. But comps are tricky – operating on a sliding scale according to the market at any given time – and they can be confusing. After all, if one home has 1000 square feet and another 2000 square feet, you are buying a larger home, and it should cost more to purchase.
That’s why, even if you can’t get inside a home, it’s a good idea to visit each comp you are thinking of using. Driving or walking by can give you an impression of the property’s upkeep, quality of materials and surroundings. We believe everyone should be able to make financial decisions with confidence.
How Are List Prices Set?
To find appropriate comps for your home, your first step is to get clear on the property. Make a list of all the details that define it, such as where it’s located, its size, how much land it sits on, the number of bedrooms and bathrooms, amenities and any special finishes or upgrades. We are an independent, advertising-supported comparison service. Listing photos are marketing materials and, as we all know, sometimes can give a misleading impression. You’ll want to verify what you’ve found online to be sure the homes you’ve selected truly are similar to yours.
There are a number of sources that can provide information about home sales prices. Like Zillow, you’ll see the newest recently sold home listings with each property plotted on an interactive map. You can zoom in on your neighborhood and see sold properties near your home. Real estate websites pull non-proprietary information from the MLS into searchable databases that let you filter listings by specifics that match your own home.
How to find comps for your home
When you find a home that checks all your boxes, you can compare the price with what similar homes sold for in the past few months. Though no two homes are exactly the same, you can still put your favorite home up against the comps to see if it's a good value for the price. How well-built and well-maintained a home is can be a critical component of its comparable value.
Be sure to only search for homes with an equal number of bedrooms and bathrooms your property. SourcesConsumerAffairs writers primarily rely on government data, industry experts and original research from other reputable publications to inform their work. To learn more about the content on our site, visit our FAQ page. Consumer Financial Protection Bureau, “Do I have the right to receive a copy of my home appraisal?
Home Buyers
Property information displayed is deemed reliable but is not guaranteed. Copyright 2022 Bright MLS, Inc. (/info/mls-disclaimers/#mls_5632) The listing broker’s offer of compensation is made only to participants of the MLS where the listing is filed. Local real estate agents are experts in their market and can give you sound advice on how to price your property, as well as help you understand data in MLS comps. Only licensed agents have access to the MLS, which is the most up-to-date and accurate tool available.
Apply online for expert recommendations with real interest rates and payments. According to Fannie Mae, at least three closed comps are required. Condition of the home – Not only do you want to find a home near the same age and condition of your home, but a comp should also take into consideration upgrades, remodels, and additions. REALTORS® are the go-to source for all of your real estate needs. Sale calculator to see what your estimated home sale proceeds could be. Cost of the home appraisal will be covered by the homebuyer.
Connect With A Redfin Agent
For instance, there may be a significant price difference between a home with a leaking roof and another that has a brand new roof. When running comps, make sure you take into account the condition of all parts of the homes you’re comparing. If your home has unusual features such as a generator, tennis court, or an Accessory Dwelling Unit , an appraisal can help bridge the gap of hard-to-find comps. Or if there’s a dispute over the value of a house – perhaps in an estate settlement, insurance claim, or divorce – an appraisal could resolve it.
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Cleveland, OH, type in your city name into the search bar. If you notice interest, but no offers, your price might be a little too high. The best strategy is to focus on the facts comparable between your home and the others. Estate planners might use comps to help a client plan for retirement.
Once you’ve nailed down your search criteria, you can zoom in on the map and look at all the recently sold homes in your neighborhood and find the ones that are the most comparable to yours. One way to find comps in your area is to use an established real estate listing website for your research. Redfin offers an easy way to identify recently sold homes in your neighborhood quickly.
Partner with a top agent familiar with the area – Knowing the area and its sales history can make a big difference, so it’s important to find a top agent familiar with your neighborhood. Better yet, visit the property – Photos don’t tell the whole story. Visit the property to better ascertain the level of maintenance, assess curb appeal, gauge the level of traffic, witness local attractions, and experience the neighborhood ambiance. Realtor websites may also provide comps, but Carroll warns that they can be inaccurate.
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