Can I find house comps in my area without the MLS?
- Public property records: If you want to find the sale price of a specific comparable, the county usually keeps those records.
- Zillow: Search on Zillow using the Recently Sold filter.
- Zillow pricing tool: Try this pricing tool to find comps in your area.
How do I research real estate comps?
- Understand your home’s specs. To find comps for your home,your first step is to get clear on the property.
- Search for similar recently sold homes. Once you have an understanding of your home’s attributes,your next step is to look for recently sold properties with similar characteristics.
- Narrow down your list.
- Get the whole picture.
- 1 How do I access comps?
- 2 How are real estate comps calculated?
- 3 How do you pull comps on MLS?
- 4 What to do when you can’t find comps?
- 5 How do I get comps sold?
- 6 How do I find comps on Redfin?
- 7 Are Zillow estimates accurate?
- 8 How recent do comps have to be for appraisal?
- 9 What is considered a comp?
- 10 Do comps matter in real estate?
- 11 What do comps mean in real estate?
- 12 How do you appraise a house?
- 13 How many miles can an appraiser go for comps?
- 14 Should you give comps to appraiser?
- 15 What percentage of short sales are approved?
- 16 Real Estate Comps: How to Find Comparables for Real Estate
- 17 What are comps in real estate?
- 18 How to find real estate comps
- 19 What to consider when finding real estate comps
- 20 Tips when looking for the best real estate comps
- 20.1 Only use sold homes
- 20.2 Pay attention to the type of home
- 20.3 Look closely at photos
- 20.4 Read the listing description
- 20.5 See it in person
- 20.6 Scan the area
- 20.7 Write everything down
- 20.8 Formulate your price
- 20.9 Compare with the Zestimate
- 20.10 Hire an appraiser
- 20.11 Avoid shortcuts
- 20.12 Adjust for seasonality
- 21 Real Estate Comps: How To Find And Use Them
- 22 5 Ways to Find Real Estate Comps in Your Area
- 23 What are real estate comps?
- 24 5 Ways to Find Real Estate Comps in Your Area
- 25 1. Use a reputable real estate website to find local comps
- 26 2. Use an online home valuation tool
- 27 3. Ask your real estate agent to procure MLS comps
- 28 4. Research public property records
- 29 5. Request a comparative market analysis (CMA)
- 30 How do I use comps to price my home?
- 31 Who uses real estate comps?
- 32 Do Your Own ‘Comps’ to Gauge Home Value
- 33 What are comps?
- 34 How to assemble the best comps
- 35 How to gauge the accuracy of your comps
- 36 How To Find Real Estate Comps For Your Home
- 37 What are real estate comps?
- 38 How to find comps for your home
- 39 A caveat on comps
- 40 Bottom line
- 41 How to Find Real Estate Comps
- 42 What Are Real Estate Comps?
- 43 How to Find Comps
- 44 Search recently sold listings
- 45 Request public records from your county
- 46 Comp Considerations
- 47 Some Caveats to Keep in Mind
- 48 Real Estate Comps: Resources for Determining Your House Value
- 49 How to Determine Your Value using Real Estate Comps
- 50 Online Resources for Determining Your House Value
How do I access comps?
Here’s how to find real estate comps on your own.
- Search recently sold listings. You can easily pull up pricing data on recently sold homes on realtor.com.
- Search general home value data. Another great realtor.com tool for seeking out comp data is the “Home Value” tab.
- Request public records from your county.
How are real estate comps calculated?
In real estate, the term “comps” is short for comparable sales. Comps are typically determined by comparing the property in question to other properties within a 1-mile radius, which have sold within the last year and have similar attributes (such as the same number of bedrooms, age, subdivision, square footage, etc).
How do you pull comps on MLS?
When pulling MLS comps, agents typically search for listings that are similar in size, condition, features, and age. These listings are ideally sold within the past six months and within a one-mile radius. In rural areas where distances from property to property tend to increase, a five-mile radius is acceptable.
What to do when you can’t find comps?
Use the cost or income approach for an accurate appraisal If you can’t find sufficient comps, the cost approach will usually work. So will the income approach, if it’s an income-producing property.
How do I get comps sold?
There are several additional resources for finding comps:
- Public property records: If you want to find the sale price of a specific comparable, the county usually keeps those records.
- Zillow: Search on Zillow using the Recently Sold filter.
- Zillow pricing tool: Try this pricing tool to find comps in your area.
How do I find comps on Redfin?
1. Use a reputable real estate website to find local comps
- Click on “More Filters.”
- Scroll slightly down and under “Listing Status,” click the toggle that says “For Sale.” This will effectively replace homes for sale with sold homes in your search area.
Are Zillow estimates accurate?
The good thing though is that Zillow never claims to be 100% accurate. The tool has an accuracy of about 80% in all areas. This is because there are no specific variances to throw it off. However, in some home value estimate cases (especially in older neighborhoods), the Zillow estimate won’t be close at all.
How recent do comps have to be for appraisal?
When an appraiser is looking for comparable properties to determine a price, they are supposed to only look at sales within the last 90 days. Now, if there aren’t enough sales a lender might go back six to 12 months. But the ideal is 90 days.
What is considered a comp?
“Comps,” or comparable sales, is a term anyone on either side of a real estate transaction should know well. It refers to homes located in the same area and very similar in size, condition and features as the home you are trying to buy or sell.
Do comps matter in real estate?
House comps are a key component of both buying and selling real estate. They can prevent you from overpaying for a property you’re buying and help you determine a realistic listing and sale price for a home you’re selling.
What do comps mean in real estate?
What Are Comps In Real Estate? Simply put, real estate comps – or “comparables ” – are comparable homes in a specific area that you are looking to buy or sell in.
How do you appraise a house?
How to find the value of a home
- Use online valuation tools. Searching “how much is my house worth?” online reveals dozens of home value estimators.
- Get a comparative market analysis.
- Use the FHFA House Price Index Calculator.
- Hire a professional appraiser.
- Evaluate comparable properties.
How many miles can an appraiser go for comps?
Many lenders want appraisers to stay within a one-mile radius for comps in a suburban area, but that is NOT a Fannie Mae requirement. Appraisers should use the most competitive sales available.
Should you give comps to appraiser?
Appraisers always search for comps that are most similar to the subject property in a variety of ways- size, location, construction, etc. We do this in order to paint the most accurate picture of what a property is truly worth.
What percentage of short sales are approved?
A Deal Is a Deal — Until It Isn’t Even when the buyer and the seller have both signed the paperwork — indicating a binding contract — only about 40 percent of short sales ever close at all.
Real Estate Comps: How to Find Comparables for Real Estate
Comparable house sales assist sellers and their agents in determining an accurate listing price for a property – one that attracts more buyers, reduces the amount of time a home spends on the market, and clears the way for a seamless closing. Please continue reading for further information on comparables, including the most critical aspects and how to determine the most accurate comps for your house.
What are comps in real estate?
According to the definition of a comp, which is an acronym for comparable sale, a recently sold property in your region that is similar to your home in terms of location, size, condition, and amenities is known as a “comp.”
How sellers use real estate comps
Sellers, particularly those who are selling their house for the first time (FSBO), analyze comparable sales to establish the appropriate listing price for their property. Even if you’re selling your property with the assistance of a real estate agent, you’ll want to be familiar with comparable sales so that you can choose whether or not you’re satisfied with the listing price your agent suggests.
How buyers use real estate comps
For the purpose of determining how much to offer on a house, buyers consult comparable sales. It is their goal, more particularly, to ensure that they do not overpay for the home they are purchasing.
How appraisers use real estate comps
When an appraiser visits to your house, they will use their own comparable sales to assist them determine how much your property is worth more correctly. Appraisals can be performed for a variety of purposes. Typically, a buyer’s lender will demand an appraisal prior to closing, but sellers may also request an appraisal to assist them determine an accurate selling price for their property.
How real estate agents use MLS comps
The local multiple listing service (MLS) is used by real estate brokers to compile comparable sales in order to develop a comparative market study (CMA). It is a compilation of comparable sales in the area that has been put together to assist an agent and a seller in determining a reasonable listing price. Real estate agents who are well-versed in their local market and who routinely run comps (even when not related to a specific transaction) are able to keep an eye on their local market and evaluate overall trends.
How to find real estate comps
When it comes to discovering comparable properties, sellers have two options: engage an agent to lead them through the research and pricing process, or identify comparable properties on their own. The following is a description of how the procedure works for both alternatives.
Real estate agents and MLS comps
Because the information provided by the local Multiple Listing Service (MLS) is typically the most accurate, it is the most reliable source of comparable property sales. Zillow’sagent directorycan assist you in locating an experienced real estate agent who is familiar with navigating the Multiple Listing Service (MLS) and locating acceptable comparable properties for your home. Furthermore, because they are familiar with your neighborhood, they can evaluate comparable sales with an eye toward neighborhood trends, property value appreciation, and price per square foot.
Many companies may provide complimentary CMAs to prospective customers in the aim of gaining your business. It provides a ballpark figure for what your property may sell for in today’s market, in your neighborhood, based on recent sales.
Can I find house comps in my area without the MLS?
There are a number of more sites for locating comparisons, including:
- Public property records: If you’re looking for the sale price of a certain comparable, the county is generally where you’ll get the information you need. Some counties allow you to look for records online, while others require you to physically visit the courthouse. One thing to keep in mind is that seller concessions are not recorded in county records. Consequently, in the event that the seller reduced the price as a result of certain essential repairs, you will see the final discounted price rather than the initial asking price. Zillow: Use the Recently Soldfilter on Zillow to see homes that have recently sold. You may also refine your search by ZIP code, square footage, and other property characteristics. Zillow also frequently includes for-sale-by-owner (FSBO) listings, which are not found on the Multiple Listing Service. The Zillow pricing tool is as follows: Check out our pricing tool to see what other people are charging in your region. To discover recent sales, simply enter your home address in the box provided. You may narrow down the results by selecting the ones that are the most comparable to your property, and we’ll compute a home value for you based on that information.
What to consider when finding real estate comps
Make an effort to locate at least three identical properties that match the following requirements:
- Limit your search to a quarter- to half-mile radius around your residence
- Specify a time span of three to six months, or less if your market is moving rapidly. Size: Try to remain within 300 square feet of the total square footage of your property. Inclusion of residences with the same number of bedrooms and bathrooms as yours is mandatory. Incorporate recent renovations, new interiors, and out-of-date elements into your evaluation of the home’s condition. A home’s age will determine how accurate a comparison can be made because main systems such as the roof, heating and cooling system, and plumbing should be in similar condition. Search for properties that have similar characteristics to yours in terms of walkability, shopping/retail, waterfront vicinity (within a short distance), vistas, public transit access, and school ratings. Comparables are identified by using the price per square foot as a metric by real estate brokers. Divide the sale price of a property by the square footage of the home, and then compare that amount to the price per square foot that you wish
Tips when looking for the best real estate comps
There are no two housing comps in the same neighborhood that are precisely same unless you live in a community where a house builder employed the same finishes, layouts, and materials in all of the homes. Even if the homes in your neighborhood are fairly similar, no comp is flawless. So, how do you go about identifying the best comparisons? Maintain as much objectivity as possible. Make an effort to put your emotional attachment to your property aside and concentrate on the facts.
Only use sold homes
Homes that are currently on the market or awaiting sale should be ignored. Why? Sellers may overprice their homes and then settle for a considerably lesser price as a result. Alternatively, sellers might set their prices below market value in the hopes of receiving many bids. You’ll never be able to get a true sense on the value of a property in your local market until the transaction is completed – it’s only worth what someone is willing to pay for it.
Pay attention to the type of home
If your property is a single-family residence, it should not be compared to townhouses or condominiums. If you’re trying to determine the value of a condo to sell, don’t compare it to anything other than other condominiums.
Look closely at photos
Examine the photographs in the listing with care. Would you say the home has finishes that are comparable to yours? Appliances, fixtures, and flooring, among other things, should be examined attentively. Even seemingly insignificant differences (such as stainless steel equipment vs older white appliances) can accumulate over time.
Read the listing description
Additionally, you should always read the listing description in addition to glancing at the photographs. It is not possible to show every development or enhancement in photographs. For example, a recently sold home may have a new roof, increasing its worth over yours, and you wouldn’t know it by simply glancing at the selling images of the home.
See it in person
If at all feasible, drive or stroll by the house to get a sense of how well it is maintained on the outside. Take note of items like cracks in the driveway or shingles that are missing. A good indication of how well the outside is maintained should be provided by the exterior’s overall condition.
Scan the area
Make certain that you are aware of the specifics of a home’s location. Is it located on a cul-de-sac rather than a major road? Is it in close proximity to a bus or rail station?
Write everything down
Make thorough notes when investigating comparables. It’s common for images and listing descriptions to disappear after a home sells, leaving you with little more than the square footage, address, and sales price – insufficient information to create a suitable comparable property. As soon as you come across a prospective competitor, gather as much information as you can.
Formulate your price
When it comes to determining a listing price, the most essential thing to remember is to take into account a variety of data points from a variety of sources.
Incorporate current sales data from the Multiple Listing Service (MLS) with internet data from sites such as Zillow and insights from your real estate agent, if you have one.
Compare with the Zestimate
Once you’ve narrowed down your intended sale price based on comparable sales, compare your work to the Zestimate for your house on Zillow. It is updated on a regular basis in accordance with market conditions and can provide you with information on longer-term pricing patterns in your region. What is the accuracy of your Zestimate? Zillow has a countrywide median inaccuracy rate of 1.9 percent for properties that are now on the market and 6.9 percent for homes that are not currently on the market.
This information contains information about your home’s characteristics, such as square footage, the number of bedrooms and bathrooms, and recent upgrades, as well as information about the local real estate market, tax assessments, and previous transactions in the area.
In the same way that you would emphasize your property’s greatest attributes to a prospective buyer, you can give more detailed information about your home by claiming it.
Hire an appraiser
Having doubts about whether or not you’ve discovered the proper listing price? Consider using the services of a professional appraiser to provide you with an unbiased assessment of the worth of your house. The cost is often between $400 and $500, and it may be money well spent to ensure an appropriate listing price, particularly if you reside in a competitive market or have done several modifications and are unsure how they should effect your pricing.
If your home is twice the size of the competition, you can’t just double the price of your property. The price of a property is determined by several factors, so don’t be tempted to cut corners by utilizing poorly matched comparables and guessing.
Adjust for seasonality
We’ve already indicated that, in order to ensure accuracy, you should only use comps from the recent few months as a reference. Another explanation for this is the fact that it is seasonal. Whether or not prices differ significantly from season to season depends on your local real estate market, but in general, properties sell more rapidly in the spring and early summer, and typically take longer to sell in the winter months. Sellers frequently attempt to attract buyers during slower seasons by offering a lower sale price, so take seasonality in mind when determining the sale price of your house.
Real Estate Comps: How To Find And Use Them
When it comes to house buying or selling, there are several important factors to consider, whether you’re a seasoned real estate expert or a first-time home buyer or seller looking at comparable sales. Let’s take a look at a couple of them.
You’ve definitely heard the old real estate phrase, “Location, location, location,” which means “location, location, location.” Well, it’s an ancient saying for a reason: it’s pretty much spot on. It is possible to pay ten times as much for a 500-square-foot apartment in areas of New York City as it is for a 5,000-square-foot house in the middle of the country.
Obviously, the disparities aren’t usually nearly as dramatic, but you get the picture. Typically, the best comparable properties are within one mile of the property, although this can vary depending on your location (rural, etc.)
The quality of a home’s construction and maintenance can be a significant factor in determining its comparative value. What is the difference between a leaking roof and a brand new roof? Yes, there is a slight price difference between the two options. Keep in mind that while comparing two properties, the state of all of the properties you’re comparing should be considered.
New homes tend to be more valuable than older ones, so don’t assume that a comparison between a home constructed in 1950 and one built in 2010 is an apples-to-apples comparison simply because they both have the same number of bathrooms and bedrooms is valid. There isn’t any such thing.
Number Of Rooms
A four-bedroom, two-bath house may appear to be a near match for a three-bedroom, two-bath house on the surface, but this is not the case. The addition of a third bedroom might result in a difference in price of $100,000 or more. Don’t forget to take into consideration the size of the home, since square footage may have a significant influence on its worth.
The value of an acreage varies depending on its location, however, assuming all other circumstances are equal, more land is worth more money. Even if the houses are almost identical, the fact that one is situated on 2 acres and the other on 10 acres must be taken into consideration when calculating the worth of both properties.
When determining the worth of a house by examining previous sales in the neighborhood, the most recent transactions are taken into consideration. When comparing your subject property to a house that just sold, the results will be far more accurate than when comparing your subject home to a house that sold two years ago. Your best chance is to look for properties that have sold within the previous six months or less.
5 Ways to Find Real Estate Comps in Your Area
The date is June 17, 2021. The deadline is November 30, 2021. byThe most recent update was made on November 30th, 2021 No matter if you’re selling your first house or purchasing your first home, locating comparable sales of properties in your region is considerably simpler now than it was even ten years ago. It wasn’t simple to locate publicly available data online back then — you required the assistance of an inside connection, such as a real estate agent or house appraiser, to pull comparable sales data from the Multiple Listing Service (MLS) (multiple listing service).
Learn how to locate comparable properties in your region by reading on.
What are real estate comps?
When you begin your search for real estate comps in your region, it is helpful to understand what comps are and what information they may provide you with before you begin your search. “Closed comparable sales” are completed home sale transactions that have taken place within a certain geographic region and in which the properties have attributes that are similar to the home you’re selling or contemplating purchasing. Although you should be aware that a property inVancouver, BCwill list for a different price than an exact duplicate of the same home listed in Birmingham, AL, you should keep in mind that Despite the fact that they are the same property, they are placed for sale in various geographic locations, and the value of each home is heavily determined by the conditions of the local housing market.
5 Ways to Find Real Estate Comps in Your Area
When looking for comparable houses in the area, the first rule of thumb is to identify three or more properties that are similar to guarantee that any comparable property is not an anomaly in terms of pricing. Consider the following scenarios: a home comp in your neighborhood may be lower than the price at which you should offer your home for sale since it was in bad condition and required renovation, while another property may have a high comp because it was the best house on your block. Starting with an average price point should be easy if you have at least three property comparables to work with.
1. Use a reputable real estate website to find local comps
Comps are an important element of the process of listing your house as well as the home assessment process. One option to identify comparable properties in your region is to do your research on a well-established real estate listing website. Redfin provides a quick and easy method to locate recently sold properties in your community with a simple search. In the event that you know the location of a recently sold property in your neighborhood, you may simply enter the property address in the search field to see all public information about the home, including the price at which it was last sold.
In addition, if you scroll down even farther to the bottom of the page, you’ll notice a heading named “Nearby Recently Sold Homes,” with a button marked “View More Recently Sold Homes” directly below it.
Alternatively, you may search for sold homes on Redfin’s website by entering your city name in the search field and pressing Enter.
- Select “More Filters” from the drop-down menu. Click the option that reads “For Sale” under “Listing Status” after you’ve scrolled down a little bit. This will essentially replace properties for sale in your search area with ones that have already sold.
For a more accurate view of recent home sales and what you can use as real estate comps in your region, you can refine your search even further by reducing the time period to a single month and then adjusting the filters to only show recently sold houses that are the most similar to your property. As an example:
- The number of bedrooms in the house
- The number of restrooms available
- If you live in a house, a condo, a multi-family unit, or something similar
- The size of your home’s square footage
- Your property’s square footage
- The year when the building was constructed
- In addition to HOA fees, if any are applicable.
More specifically, you may uncover certain amenities or housing trends that may boost the value of your home, such as being on the water or having a view, by conducting an in-depth search. Be aware that if you narrow your search too much, you may not be able to identify enough recently sold properties in your region that can be used as credible comparables. Example of how to search for real estate comps based on a three-bedroom house with two baths that has just sold is shown below. Since the most recent data is the most informative, start with one month to see what comes up, then expand your time window to include transactions that have occurred within the last three or six months.
As soon as you’ve narrowed down your search criteria, you can zoom in on the map and look at all of the recently sold houses in your area to see which ones are the most similar to yours.
You’ll be able to estimate a realistic beginning price that is consistent with the existing housing market from this point on.
2. Use an online home valuation tool
Another useful tool while looking for real estate comps is a house valuation tool, which may help you understand how much your property is worth and serve as a suitable beginning point for determining the fair market value of your home in the first place. As a result of the fact that Redfin uses comprehensive MLS data on recently sold houses in your region, we provide a number of various options to obtain an online home value.
- Instant home valuation and a free home report are available: This is a quick and simple method of determining how much your house is worth. Simply enter your address and Redfin will provide an estimate for your property based on recent home sales in your neighborhood. It will even show you comparable properties in your neighborhood that are slightly below the estimate
- A professional estimate generated by a Redfin Agent includes the following information: Using this service, you will receive a free, no-obligation property estimate provided by a Redfin agent who is familiar with the local housing market. You will receive an estimate within an hour that is more complete than the one you received immediately, even if you do not receive it immediately.
*These estimates are not meant to be used in place of an appraisal and should not be considered a substitute for the services of a professional, certified appraiser.
3. Ask your real estate agent to procure MLS comps
Working with a local real estate agent is one of the most reliable ways to obtain accurate real estate comparisons. Local real estate agents are knowledgeable about local market and can provide you with reliable advise on how to price your home, as well as assistance in interpreting data from multiple listing service comparisons. Only licensed real estate agents have access to the Multiple Listing Service (MLS), which is the most up-to-date and accurate resource accessible. When listing a house for sale, real estate agents use comparable sales data from the Multiple Listing Service (MLS) to offer clients with a reasonable pricing range.
4. Research public property records
The public property records of your county are yet another useful resource for homebuyers and sellers in your area. Unfortunately, when it comes to comparisons, public property records can be hit or miss, since you’ll only be able to identify the most recent documented sales price, which may be 10 years old. As a result, if there have been few or no recent transactions in the region, you may be left with property comparisons that do not accurately reflect current market circumstances. Even while public property records might be an excellent place to start, you’ll need to do more research in order to get correct information.
Visit the website of your county or city and perform a search for “property records.” The street address of the house should provide you with access to property tax information, which will show you the most recent sold price as well as the current taxes owed on the property.
5. Request a comparative market analysis (CMA)
Real estate agents and brokers utilize comparative market analyses (CMAs)* to provide sellers with all of the information they want before listing a home for sale. Finding the sweet spot in terms of listing pricing is critical to completing a rapid transaction. The optimal listing price is the one that is neither too low, where you wind up losing money, nor too expensive, where the house does not sell at all, according to the experts. In addition, for purchasers, a CMA may assist in determining if a house is a good value and identifying a competitive offer that will be considered seriously—without going overboard in terms of price.
However, the CMA of a real estate agent is more than simply a collection of figures.
Many real estate agents and brokers have software that they use to produce extensive comparative market analyses (CMAs) of properties.
The most effective way to maintain track of your research if you’re writing your own report would be to create a spreadsheet. A typical CMA will comprise the following items:
- The location of the property as well as three to five comparable properties in the vicinity
- The following information is provided for each similar property: elevation, floor layout, number of bedrooms and baths
- Each property’s square footage is specified
- The sales price of each comparable property
- The price of each comparable property If there are any discrepancies, dollar adjustments will be made. The average adjusted sales price per square foot of each comparable property
A professional, licensed appraiser’s services are not substituted for the services provided by this website, which is not meant to be an appraisal in the traditional sense.
How do I use comps to price my home?
The use of real estate comps can assist you in effectively pricing your house by providing you with a range for its “fair market value” based on previous market activity. Then, depending on the state of the house, its particular features, and other qualities that purchasers are likely to evaluate, you can increase or decrease the fair market price by a certain amount.
What goes into a comps analysis?
Comparable sales in the real estate market assist you in appropriately pricing your house by providing you with a range of its “fair market value” based on current market activity. Then, depending on the condition of the house, its particular features, and other qualities that purchasers are likely to evaluate, you can increase or decrease the fair market price by an amount equal to or greater than that amount.
Who uses real estate comps?
Agents and brokers in the real estate industry Every day, they rely on real estate comps to do their tasks. In order to advise a listing price for a house that is about to go on the market and represents a reasonable market price, an agent or broker will use comparable sales. Agents are also privy to any pending sales, which might have an impact on real estate comps and CMA reports in the future. The number of transactions in your region will also have an impact on the fair market value of any house that is put on the market.
- Understanding real estate comparables and the current health of the market in your local area is critical to making informed decisions.
- Comparables are used by house sellers to gain an understanding of what similar properties in the area are selling for, which allows them to set a list price they are comfortable with.
- Making an offer on a home is aided by correct real estate comparables.
- Comparables are also useful in developing a strategy for negotiating the sale of a house.
- First and foremost, the appraiser is frequently requested by the buyer’s mortgage lender.
- When calculating an appropriate property value, the appraiser considers comparable sales in the area as well as a variety of other considerations.
- The homebuyer will be responsible for the cost of the appraisal of the property.
- Your local real estate agent, on the other hand, has the resources and knowledge to guide you through the whole process.
They can assist you in determining a reasonable asking price for your house. Are you interested about how much money you may expect to make when you sell your home? Check out Redfin’s homesale calculator to get an idea of how much money you may expect to get from the sale of your home.
Do Your Own ‘Comps’ to Gauge Home Value
When purchasing or selling real estate, you’ll want to have a thorough understanding of the property’s market worth. When it comes to selling, knowing what something is worth might help you determine a price. After all, you don’t want to ask for too little and end up leaving money on the table, nor do you want to ask for too much and cause a snag in your transaction. If you’re a buyer, learning how to effectively estimate a home’s worth will help you recognize a good deal and avoid overpaying for a property.
Do you want to know how much your house is worth?
What are comps?
Estimating the worth of a house might be a more difficult task than it appears. That’s where real estate comparative listings — referred to as “comps” in the real estate industry — come in. Comps are sales records of recently sold properties that serve as benchmarks. They are used by appraisers and real estate brokers to obtain the most accurate assessment of a home’s worth, and you can use them to get an estimate of your own. Finding comps is a process that entails looking for recent sales of properties that are as similar to your own as possible, comparing your home to those sales, and then modifying your home’s price to account for the variations between the two.
How to assemble the best comps
Follow these four steps to locate and analyze comparable properties in order to determine the worth of your home:
Step 1. Search recently sold listings
In order to begin, check real-estate listing websites, such as Zillow and Redfin, for the handful of recently sold property that are the most similar to your current residence. Make use of listing sites that allow you to search for “just sold” or “recent sales” and display the results of your search on a map. Here’s how it’s done:
- Enter the name of your city and click on the map to see sold homes organized by neighborhood
- Filter your search results by criteria such as the date the property was sold, the price, and the number of bedrooms. If the site permits it, utilize other filters to obtain additional information for comparative purposes, such as crime data, school scores, and local amenities. Reduce the amount of items in your collection to a reasonable level
- A half-dozen is a good starting point.
Keep the following in mind:
- Because the ultimate price of a property might fluctuate, for-sale listings are not good comparables. Sellers’ concessions are not reflected in sold pricing. You may be unaware that the genuine price of a property is actually $217,000 because the buyer convinced the seller to spend $3,000 on furnace repairs or to assist with the buyer’s closing fees while the home was being sold at the recorded price of $220,000, for example. Attempt to contact a few real estate agents and ask them if they would check their listing service for seller concessions on your comps
- Most will do so or provide you their own set of comps as a means to connect with a possible client. Construction quality, landscape, home features, and care are all revealed in comps that have a large number of images
- Copy or download pertinent sold listings from the site before they are removed from the database
- Making a note of a listing’s price per square foot provides you with a helpful data point when comparing other listings. If it is not displayed on a listing, you can compute it as follows: Subtract the selling price from the square footage (both numbers commonly included in listings). As an illustration: In the case of a 1,200-square-foot property that sold for $300,000, the square-foot price is $250 (300,000 divided by 1,200 = 250)
Step 2. Apply these standards
The following are the sold listings that are the most useful as comparisons: Recent: Make use of listings that have recently sold. The length of time depends on your market. If the properties in the area are selling rapidly, Dewling recommends purchasing a home that is no more than 45 days old. Similar: In a subdivision, you may discover sold listings with identical floor plans to those that are currently on the market. That’s a fantastic concept. Otherwise, Dewling recommends looking for homes that are around the same size as yours and with floor plans that are comparable to yours — for example, a ranch home if yours is also a ranch.
In the words of Krings, “the market is paying for space.” “There’s always the option of going into a property that’s 2,000 square feet and moving a wall around or tearing down a wall.” A comp should be in the same school district, area, and, in certain cases, even on the same side of the street as the candidate.
‘It’s almost exactly the same spot,’ Dewling claims.
Step 3. Visit your comps
Listing images are marketing materials, and as we all know, they may occasionally provide the wrong impression about a property. You’ll want to double-check the information you’ve gathered online to ensure that the homes you’ve chosen are, in fact, comparable to your own. As a result, even if you are unable to enter a home, it is a good idea to pay a visit to each competitor you are considering utilizing. It is possible to get a sense of the property’s care, quality of materials used, and surrounding environment just by driving or strolling past it.
- It is preferable to be in a quiet cul-de-sac rather than on a busy road. The curb appeal of surrounding homes has an impact on the value of a home. Unless the home is located on a busy road, adjacent shops, restaurants, and entertainment increase the value of the property
- A landfill, hazardous site, or neighboring eyesore or noise source decreases the value of the property. A desirable characteristic is “walkability,” which includes access to hiking trails and walkways, as well as accessibility to businesses and entertainment.
Step 4. Calculate your home’s value
Select the three comparable properties that are the most similar to your property based on the information you’ve obtained online and during your site visits. Use the middle price, modifying it upwards or downwards to account for variances in size, quality, location, features, and upkeep, among other factors. Dewling bases the price of a home on the price per square foot as a starting point for determining its value. If a property that sold for $280 per square foot is identical to yours, but yours has an upgraded kitchen, you should increase your asking price by a little amount of money to compensate.
According to him, an improved exterior or landscaping will only add roughly 25 percent to the value of a home.
How to gauge the accuracy of your comps
What level of precision can you expect from your results? That is contingent on selecting the appropriate listings and accurately assessing the differences. It is possible to determine the worth of your house in numerous ways, and you might use one of the following methods to evaluate your results:
- Comparing your projected price to the estimated price of your house using an online home value calculator such as Zillow or Redfin is a good idea. Take these projections with a grain of salt, though, because they are not yet a reliable measure of the future. Inquire with a real estate agent about obtaining a free pricing estimate
- An appraiser’s judgment is the most accurate technique of determining value. If you want to sell your home through a for-sale-by-owner method, this may be useful, despite the fact that it costs around $400 to $500.
Carrying out your own comps will provide you with a reasonable estimate of worth – at no expense or commitment. Furthermore, it may be entertaining and educational to have a better grasp of your neighbors’ and your own house values by doing so.
How To Find Real Estate Comps For Your Home
We at Bankrate are dedicated to assisting you in making more informed financial decisions. Despite the fact that we adhere to stringent guidelines, this post may include references to items offered by our partners. Here’s what you need to know about Knowing how much your home is worth will assist you in determining how much equity you have available and how to market your property successfully when it comes time to sell your home. Real estate comparables are one of the methods that are used to assess the worth of a house.
What are real estate comps?
Real estate comps are short for “comparables,” which is an industry term that refers to a group of residences that are similar in a way that makes them suitable for use in a value comparison. Recent sales in a certain area from a specific time period, such as the last three or six months, and properties with a comparable layout, such the same number of bathrooms, are frequently used to create comps in real estate transactions.
Comps are crucial because they give significant context for what is being discussed. Some of the most important variables that are often taken into account while selecting comparables are as follows:
- Location, size or square footage, condition, style, and age of the property are all important considerations. Improvements or amenities for the home
“Real estate comps are essential for completely understanding the health of today’s real estate market,” says John Ameralis, a licensed associate real estate broker at Compass in New York City who specializes in residential sales. “They include properties that are now active, under contract, or have recently sold in the preceding six months.” Comps are not just useful for buyers and sellers who are considering a purchase or a sale, though. As Ameralis points out, “banks will hire a third-party assessment business to evaluate the fair market value of a home when homeowners refinance their property.”
How to find comps for your home
It is possible to uncover relevant real estate comps with a little amount of study, whether you are trying to access the equity in your property, offer it for sale, or have another reason for wanting to know. Here’s how to do it.
1. Understand your home’s specs
The first step in locating comparable properties for your house is to understand the property. Write down all of the specifics of your property, including its location, its size and shape, the land it stands on, amenities, the number of bedrooms and bathrooms, and any unique features or additions. To go even further, you may find additional aspects that could have an influence on the value of your house, such as the school district in which it is located, as well as its closeness to public transportation and parks.
2. Search for similar recently sold homes
Once you have a clear grasp of the qualities of your property, the next step is to hunt for previously sold properties that have characteristics that are comparable to yours. In order to find “sold” houses, rather than “listed” homes, it is necessary to search for “sold” homes rather than “listed” homes. This is because listings only display the ask or list price, not the selling price. Many different home-searching tools are accessible on the internet. Utilize one that enables you to specify search parameters, like date of sale, neighborhood, and square footage of the home, as much as possible.
Set your search parameters to include just homes in the same neighborhood that you live in, as well as homes of comparable size and the sort of property you’re comparing.
3. Narrow down your list
Once you’ve found candidates who are comparable, you should further investigate them before reaching a value assessment. Ameralis recommends that you have a list of at least four to six comparable properties in order to properly analyze your property. It’s possible that if you reside in a very competitive housing market, you’ll want to be even more explicit about your requirements. For example, two identically sized homes with similar finishes, located a quarter of a mile apart in the same school district and both featuring in-ground pools, are likely to have fairly similar prices in the real estate market.
In contrast, if the house you’re looking at is significantly different from others that have recently sold nearby, is in a slower market, or is in a rural or sparsely populated location, you may need to broaden your search parameters.
4. Get the whole picture
There is a limit to how much knowledge you can collect from the internet. In theory, certain features may appear to be almost identical on paper (or on a screen), but in practice, they may have significant discrepancies that have an influence on their worth. For example, one property may be located on a cul-de-sac with excellent curb appeal, while another in the same community may be subjected to constant noise from a nearby freeway. If, on the other hand, a house search engine indicates that a property sold for $300,000.
As a result, if at all feasible, visit the homes in person or contact the agents who sold them to obtain extra information that may not be readily apparent from an internet search.
5. Make comparisons and do the math
Having completed your research and narrowed down your list of four to six comparable properties, you may simply compare the selling prices of each to obtain a general estimate of your home’s fair market worth, or you can crunch some numbers to gain a different perspective. Take, for example, the square footage of each comparable property and divide the sale price by the amount of square footage it contains. The price-per-square-foot (PPSF) of the home will be shown by this. Using the average PPSF of all the comps on your list, you can calculate the square footage of your property by multiplying the dollar value of that figure by the number of square feet in your home.
The average of these estimates comes to $218 per person.
Now that you’ve completed this computation, you should have a general idea of how much your home is worth.
A caveat on comps
If, after conducting your research, you arrive at a valuation that appears to be correct, keep in mind that, unless you’re looking at a row of identical homes (for example, brand-new, neighboring townhouses), there will be subtle discrepancies between them. “Each property is distinctive in its own way. As a result, while you may be able to locate qualities that are almost same, none will be identical,” explains Ameralis. As a result, while it is feasible to gather comparable sales and estimate the value of your property on your own, working with a certified real estate agent and an appraiser is the most trustworthy approach to determine the value of your home.
Despite the fact that you will have to pay for an appraisal, it will thoroughly analyze the value of your home by taking into consideration comparable sales, the city or county’s valuation, the site’s hazards or improvements, the overall condition of the home, and other factors such as rental income or fees, HOA dues, and the cost to build a similar home from the ground up.
At the end of the day, determining the value of a property is not an exact science; a home is only worth what someone is willing to pay for it. Understanding the elements that influence the value of your property will enable you to make more educated decisions when it comes time to sell your home or take advantage of whatever equity you have built up.
- How to prevent having your house appraised at a low value In this article, we will show you how to determine the square footage of a property. I’m wondering how much it would cost to have a house appraised.
How to Find Real Estate Comps
The internet has provided you with a wealth of information on the home market in your area that you would not have had access to otherwise. As a final note, while working with a professional real estate agent is always a good idea when selling or buying a house, there’s no harm in conducting some of your own research on the back end—including looking at real estate comps. A thorough understanding of the local market is required in order to obtain the greatest potential price for a house that you are selling or acquiring.
Comps can also be used to determine whether a home is worth buying or selling.
So, how can you locate comparable properties without the assistance of an agent?
What Are Real Estate Comps?
Actual sales records of recently sold properties that are similar to the property you’re interested in, both in terms of features and in terms of general location are referred to as real estate comps (also known as real estate comparative listings). The utilization of comparable properties is employed by house appraisers and real estate brokers to establish the suitable value of a certain property. To do this, data on properties that are as close as possible to the one presently being analyzed should be gathered with the understanding that whatever those homes sold for would most likely set the range for what a given property is worth (at least insofar as what buyers will pay for it, which is, ultimately, a significant part of what determines its value).
How to Find Comps
If you’ve ever purchased or sold a house, you’re certainly acquainted with the lists of comparable properties that your agent gives you with. However, you do not have to wait for your agent to begin digging into the data. Here’s how to do your own search for comparable properties.
Search recently sold listings
- On realtor.com, you can quickly and simply obtain pricing information on recently sold houses. It is possible to do so by selecting the “Just Sold” button and entering your location. From there, you may utilize the map view to find postings in a more precise location by zooming in. This is a critical step since various portions of a neighborhood are often priced at different points on the spectrum. Remember that not all properties qualify as comps just because they are located within a square mile or so of the home under consideration. Along with house characteristics such as square footage, the number of bedrooms and bathrooms, and the overall condition of the property, you’ll want to compare the price of the home as well.
Search general home value data
- The “Home Value” option on realtor.com is another excellent resource for locating comparable properties. There, you can discover what the average price per square foot is in your area, as well as the media listing price and sold price for your neighborhood. It is not as informative as examining recently sold listings owing to the fact that you are not comparing individual properties, but it will provide you with a broad notion of what homes in your region are selling for on a regular basis.
Request public records from your county
- A large deal of information about house sales prices is maintained by most counties, and this information might be valuable to you when you’re attempting to find information about comparable sales in the real estate market. The advantage of using this method is that you will most likely be able to obtain information that is a little older than what you would acquire through other routes. The information about recently sold properties is only available for a short period of time on many websites. To learn more about how to gain access to these data, contact your local county office. Some counties make them available online, while others require you to visit them in person
- Some counties provide both options.
If possible, you should wind up with about 8-12 comparables from which to do your pricing comparisons. This will provide you with the most accurate picture possible of the state of the local market.
It is not enough to simply locate real estate comparables; you must also understand how to make the most of these resources.
And, in order to do so, there are a few things to bear in mind that will help you make the most accurate comparisons possible: Here are a few of the more notable examples.
- Location – The more convenient the location is to your primary residence, the better it is. Examine similar houses on the same street or within a few blocks of each other. Home comparisons between homes in the same subdivision and/or school district may be quite useful as well. Size – Look for houses that are around 300 square feet or less in size than the property you’re hoping to locate comparable listings for, or properties that are in the same neighborhood. Because square footage is a significant determinant of pricing, it will be ineffective to compare the property in issue to homes that are significantly larger or smaller than it, even if they are otherwise comparable in terms of the number of bedrooms and other basic characteristics. Home age and condition – A property that is the same size as the one in issue and situated on the same street may be valued differently from the one in question because of the age and condition of the property. Take into consideration how the homes compare in terms of these criteria while evaluating the utility or usefulness of a comp, and filter down your search to only properties that are of a comparable age and in a similar condition to your property
- External factors — When it comes to location, there is more to consider than just a home’s zip code when determining its worth. The walkability of a property, proximity to important highways and surrounding facilities, crime, and the curb appeal of neighboring homes are all factors that influence the total price of a home. If you’re considering purchasing, pay a visit in person and take a walk about the neighborhood. Putting the home within its broad context can assist you in understanding its overall setting, and you may also notice certain issues of the property that were not apparent in photos
- For example, a cracked driveway or near proximity to an extremely busy roadway.
Some Caveats to Keep in Mind
Although real estate comps can provide a wealth of information, they do not always convey the complete story of a transaction’s success or failure. Important to remember here is that the price at which a house sells is not always the same as the price at which it was advertised. It also does not take into consideration any concessions the seller may have made, such as paying certain repair expenses or included a couple of years’ worth of homeowners insurance with the sale. Maintain some wiggle room in your pricing expectations, and keep in mind that the ultimate goal is to gain an understanding of a home’s value in relation to its neighbors, not necessarily to set a concrete limit on how much you can list it for or how much you’ll have to spend to acquire the property.
Working with an agent to identify the optimum price for a home based on comparable sales and other unique considerations is a wise investment.
Everything else should fall into place after that.
Real Estate Comps: Resources for Determining Your House Value
The days of contacting your local Realtor or engaging an expensive appraiser only to find out how much your property is worth are coming to an end, thanks to technological advancements. For the purpose of determining an acceptable value for your property, appraisers and real estate agents generally examine the values of homes that are currently on the market as well as those that have sold in the recent past. Today, you can conduct the same type of research by examining real estate comparables and determining the market worth of any property you like to purchase.
How to Determine Your Value using Real Estate Comps
This section will provide you with a quick overview of the work that Realtors and Appraisers perform in order to calculate the selling price. If you don’t want to learn how to assess the worth of your home and only want to know where to locate comparable sales data online, go forward to the “Real Estate Comparable Sales Resources” section further down on this page.
What Are Comps
A home appraiser or real estate agent would often look at three comparable transactions, or “comps,” as they are known in the business, in order to estimate the worth of a house. MLS access is available to agents and appraisers. The Multiple Listing Service (MLS), sometimes known as an MLS, is a database that contains all of the properties in a certain region that have been advertised “for sale,” are in the process of being sold (pending sale), or have previously sold. You may have a more difficult time getting access to this information if you are not an agent or an appraiser.
Additionally, you may request a list of comparable sales from your agent, which should be simple and costless for your agent to provide to you.
In order to establish the worth of your property, you must discover residences that are similar in size, condition, and location to yours.
The principle behind value holds that your house is worth whatever others are willing to pay for it – and the simplest method to assess how much others are ready to pay for your home is to look at what they’ve paid for comparable homes in your neighborhood in the past.
How to Use Comps to Determine House Value
However, every property is unique, with qualities that make it more or less appealing depending on the buyer’s preferences. Consider the following examples: a three-bedroom house is likely to be worth more than a similar home in the area with just two bedrooms, and a two-car garage is likely to be worth more than a one-car garage. The value of a property is determined by looking at three identical houses that have sold within the preceding six months that are similar, and then compensating for the variances between them.
Find out how much a pool is worth and remove that amount from the value of your property.
Then figure out what the typical cost per square foot is in your neighborhood, and boost the worth of your property by that amount.
However, by using the same rules, you may make an educated guess at the cost and come quite close to it.
Online Resources for Determining Your House Value
According to the discussion above, the process of employing a comparable market analysis has begun to face competition from a number of internet technologies that make it easier to get an estimate of your home’s value. As technology advances, the instruments we use to determine the worth of a property become increasingly sophisticated. Finding comps (similar data) is now as simple as filling out a form with your address information. Be aware that many of these services are not as exact as working with a professional, but when used together, they can assist in determining an approximate value range without the need for an expert’s assistance.
Free House Value Sites
With a tool known as a “Zestimate,” which is an automatic estimate based on public records and sales comps, Zillow is the largest player in the online house worth game. Zillow is the largest player in the online house value game. You may also search for “sold” listings to use as benchmarks for your own listings. Trulia.com– Similar to Zillow, Trulia allows you to search for “sold listings” in order to gather comparable properties. Redfin is an internet brokerage that offers a free online property appraisal service.
In addition to public data on properties, Property Shark also gives recent sales information, sale history information and comparables.
Pay Property Value Sites
Smart Reports for the Home Among the features offered by Home Smart Reports are a pay house value engine that includes property information, neighboring sales with a map and a neighborhood summary, as well as a much more complex report that includes a risk analysis, many more comparable sales, and many statistical charts. RealQuest.com The RealQuest service (which has been voted the best by multiple BP members) delivers a plethora of important information on a certain property.
Property Detail Reports, Comparable Sales, Parcel Map/Assessor Map, Street Map, Neighborhood Information, Legal and Vesting, Automated Valuation (AVM), Transaction History, Custom Searches, and Flood Maps are just a few of the basic features available to you.