When you sell your house, you need to price your home accurately. One of the best ways to price your home is to research comparable sale prices of recently sold homes in your local real estate market. There are several ways to find real estate comps in your area.
Getting an accurate home value enables you to set an appropriate listing price. You find real estate comps using a combination of appraisers, a comparative market analysis (CMA), and real estate websites like Zillow, Redfin, and Realtor.com.
In this article, we’ll discuss how to find real estate comparables of similar homes so you can sell your house more efficiently.
Ways to Find Real Estate Comps in Your Area
Finding real estate comps in your area is one way to ensure that your home’s sale price is in line with buyer expectations. If you price too high, your home will languish on the market, and a lender will unlikely approve a mortgage for potential homebuyers. If you price too low, you leave money on the table.
Real estate comps, or comparables, are properties in the same area you want to buy or sell in. They provide a set of properties that share similar characteristics, making them ideal for price comparison. There are several ways to find real estate comps in your area.
One way is to use a reputable real estate website to find local comps. You can also befriend a local Realtor who can help you find the correct comps for your property.
You can pull data from the MLS (Multiple Listing Service) databases of properties that have been sold or are currently for sale in your area. Also, you use recently sold homes as comparables by looking at their location, size, condition, and features.
Finding real estate comps is vital in listing your home and the home appraisal process. Make sure that the comps you choose are accurate and up-to-date to get a precise estimate of the value of your property.
Understanding Real Estate Comps
As you start researching to find real estate comps in your area, you must look for similar properties. For instance, you’ll look for recently sold townhouses in your area if you’re selling a townhouse. The same applies to single-family homes.
A similar home is close to yours in:
- Square footage
- Number of bedrooms
- Upgrades
- Lot size
- Renovations
- School district
- Housing market (local to you)
House comps enable you to set an accurate asking price. That way, your home aligns with local home sales and home prices reflecting local market conditions. An accurate listing price ensures you sell your home in a reasonable time frame.
The Real Estate Market
Home sellers have several house sell options: FSBO, traditional sale, or a convenient cash buyer. No matter how you sell, you should understand the real estate market.
Understanding the real estate market can be a complex process. It involves analyzing current market values of properties, understanding the demographics of buyers and sellers, and keeping up with trends in the industry.
The real estate market involves a complex interaction between agents, such as land lot developers, developers, redevelopers, owners, and renters.
To understand it better, looking at factors that drive the real estate market, such as demographics, economic conditions, housing supply and demand, mortgage rates, and availability of financing options, is vital.
Demographics provide information on the age, income, and other characteristics of potential buyers or renters. Economic conditions such as job growth and inflation can also affect the real estate market by influencing how much people are willing to pay for a property.
The supply of available housing is another factor that affects prices; when homes are abundant on the market, it can lead to lower prices. Mortgage rates and the availability of financing options can also impact whether people can purchase or rent a property.
Keep up with trends in the industry by looking at data from sources like The National Association of Realtors (NAR), which provides housing statistics and real estate market trends on a national level. Additionally, local markets may have unique trends, which should be considered when deciding about buying or selling a property.
Overall, understanding the real estate market requires looking at multiple factors, including demographics, economic conditions, housing supply and demand, mortgage rates, and availability of financing options, and keeping up with trends in both local and national markets.
How to Find Real Estate Comps (Research)
Homeowners find real estate comps via research. An excellent place to start is public property records. Once you’ve researched records, several other options are available.
Real Estate Websites
Real estate websites like Redfin, Realtor, and Zillow have “Find A Home” features that make it easy to find comparable properties in your area. When looking for the best real estate comps, you should only use recently sold homes, pay attention to the type of home, look closely at photos and read the listing description.
Using these resources, you can get an accurate estimate of your home’s worth and ensure you get the best possible price when selling your property.
Online Home Valuation Tools
Finding real estate comps can be tricky, but online home valuation tools make it easier. With these tools, you quickly and accurately estimate the value of your home by comparing it to similar properties in the area.
You’ll need to enter your address and some basic information about your home to get started. Then, you view a list of comparable homes in the area and compare their values. This will give you an idea of your home is worth and how much it could sell for in the current market.
You also use online home valuation tools for more detailed information about comparable properties. For example, you see how long they’ve been on the market, their amenities, and their condition.
Using online home valuation tools is a great way to estimate your home’s value accurately without hiring a professional appraiser. It’s also a convenient way to compare properties in the area so that you make an informed decision when it comes time to sell your house.
About Real Estate Agents
Licensed real estate agents are a resource for finding real estate comps in your area. Agents have access to the Multiple Listing Service (MLS), a database of properties that have been sold or are currently for sale in a given area. MLS comps based on recent sales are among the most accurate data points you have available to you.
Agents use this data to compare recently sold homes similar to the property you’re trying to buy or sell in terms of location, size, condition, and features. They also provide insights into local market trends and help you determine an accurate value for your home.
Public Property Records
Public property records are a resource for finding real estate comps in your area. Property records contain information about ownership, tax assessments, and other details related to a particular property. By accessing public records, you compare properties in your area and understand what similar properties are worth.
You access public property records online through county websites or services like NETR Online and StateRecords.org. These sites provide access to documents such as deed transfers, tax assessments, and other important property history information.
In addition to helping you find real estate comps in your area, public property records are used to research zoning laws and other regulations that may affect how you use the land or building.
Overall, public property records are an invaluable resource for researching real estate comps in your area. With just a few clicks, you access detailed information about properties near you that will help you make informed decisions when selling real estate.
Comparative Market Analysis
A Comparative Market Analysis (CMA) is an excellent tool for finding comps in your area. A CMA evaluates a home’s value based on similar, recently sold homes (called comparables) in the same neighborhood. Real estate professionals can prepare it by examining comparable properties sold recently and adjusting for differences between them and the evaluated property.
When using a CMA, it’s essential to consider location, size, condition, age, amenities, and home features. You should also consider any recent improvements or renovations that may have been made to the house. This will help ensure that you get an accurate assessment of its value.
Identify comparable properties in your area that have recently sold to get started with a CMA. Then compare those properties to the one you’re evaluating and make any necessary adjustments for their differences. Finally, use this information to determine an estimated market value for the assessed property.
A CMA can be a great way to find comps in your area and accurately assess a home’s value before listing it on the real estate market.
Why Comps are Useful When Selling Your Home
When selling your home, finding comps is essential to help you determine the right price for your property.
By looking at the sales prices of these similar properties, you can better understand what buyers might be willing to pay for your home. This will help you set a competitive price to attract buyers and ensure you get the best return on your investment.
Conclusion
Real estate comps, or comparables, are a crucial tool used to determine the value of a home. The best way to get real estate comps in your area is to use a reputable website like Zillow or Redfin. These websites allow you to search for recently sold homes similar to yours in terms of location, size, condition, and features.
You can also use the MLS (Multiple Listing Service) databases which contain properties that have been sold or are currently for sale in your area. Also, consulting with a local real estate agent can help you find accurate comps and understand the current market trends in your area.
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