While home pricing can feel like a guessing game, the real estate compilation – a comparable home sales in your area – then raises a mystery. Whether you are selling and wanting to set a competitive price, buy, or make a strong offer, it’s important to know what a similar home is looking for. Read this Redfin article on how to find a real estate comp in your area before selling your home in San Diego or closing that home in Miami.
What is a real estate comp?
Real estate comps, also known as “closed, comparable sales,” have recently been sold in certain regions that share similar characteristics with homes they are considering selling or purchasing.
Please note that the value of a home varies depending on the location. For example, a Houston, Texas home is listed at a different price than the exact replica of the same home listed in Sacramento, California. Even if the household is the same, local market conditions play a major role in determining its value.
Factors that affect real estate
To be considered an equivalent property, the property must ideally match your home.
position
Location is important. In some areas, the value of a property can vary from neighborhood to neighborhood, block to block, or within 100 yards. Start by looking for a comp within a mile radius and travel to 5 miles if necessary. Expertise can help you understand the nuances of your neighborhood, so take your time to ask your agent to help you.
neighborhood
Real Estate Comps must have the same neighborhood features, such as schools, stores, hospitals, waterfronts, parks, and scenery. Also, be aware of public transport and walking access.
The year it was built
Think of it as you are building a house built within the 5-year range of your home. Many assume that older homes require more work and updates. This is not always the case, but new homes initially have a fair market value.
House size
Square footage plays an important role in comparing the value of a home. After all, if you have 1,000 square feet and another 2,000 square feet for one house, you buy a bigger house, so it should cost more to buy. Area increases or decreases the value of the real estate comp you see. The best comp for you is a property that rivals you.
Layout
If your home has a strange layout, or if it is split into small separate rooms, you can lower the value and selling price.
Price per square foot
Calculate the price per square foot by dividing the selling price of a home by area. Prices per square foot are a good standard for neighborhood comparisons.
Number of beds and baths
Typically, the value of the home increases if there are more bedrooms or bathrooms. This converts to a higher selling price and takes into account a higher comp.
situation
If your home is in ruins and requires a lot of work and investment to make it liveable, the price the home last sold may reflect a fixer upper. On the surface, however, these transactions appear on the comp just as they would if the home was ready. It is important to see what the unusually high or low selling prices reflect and dig further into what will help you put these comps in perspective.
Upgrades and renovations
When a homeowner updates a bathroom or renovates a kitchen, the home value usually increases. Consider the renovations and upgrades that appear on your real estate comp, and how they compare to the features of your home. Does your home have a new kitchen or a deck that needs to be modified? One of these will definitely affect the value of your home.
Time frame when the comp is sold
Focus on homes sold within 3-6 months. In a hot market that supports sellers, you may want to focus on even shorter time slots.
5 ways to find a real estate comp in your area
When searching for local comps, the first rule of thumb is to ensure that the equivalent property is not abnormal in price and find three or more similar properties. For example, one homecomp in your area may be lower than what you need to sell because you needed to work in poor condition. Another property could be expensive as it was the best home on the block. Having at least three properties should provide an average price point from the start. Below are five simple ways to get these real estate comps.
1. Find a local comp using the real estate website
Real estate listing websites like Redfin make it easy to find recent home sales in your area.
How to find a comp in Redfin: Search by address to see public sales information including the last selling price. Scroll down the list page for recently sold houses nearby. For a complete map of recent sales, click “See recently sold houses.” Search refinement:
Use a filter to narrow the results.
List Status: Set to “Sales” to delete an active list. Time frame: Start from one month and expand to 3-6 months if necessary. Property details: Beds, baths, square footage, lot size, year of construction, HOA fees match your home. Special features: Consider amenities such as a waterfront view and recent upgrades.
The latest data will provide you with the best insight into fair market value and help you set competitive prices regardless of whether you are buying or selling. This method does not explain factors such as the condition of the home or renovation, but it is a strong starting point.
2. Use the online home assessment tool
Another valuable tool when searching for real estate comps is a home assessment tool that provides a good starting point for understanding what your home is worth and determining the value of a fair market. Redfin uses full MLS data for recently sold homes in your area, and offers several different ways to access online home assessments. *
Instant Home Value Estimates and Free Home Report: This is a quick and easy way to see what your home sells for. Simply enter your address and you can instantly see Redfin estimates for your home based on recent home sales in your area. You will also see the completes for your area just below the quote. Expert Estimates Created by Redfin Agent: This is a free, non-obligatory property estimate created by Redfin Agents who know the housing market in your area. You cannot get an estimate immediately, but you will receive a more comprehensive estimate within an hour.
*These estimates are not intended as assessments and do not replace the services of professional, authorized evaluators.
3. Ask a real estate agent to procure an MLS comp
One surefire way to get an accurate real estate comp is to work with a local real estate agent. Local real estate agents are market experts and can not only help you understand MLS comp data, but also provide sound advice on how to price your property. Only licensed agents can access MLS. This is the latest and accurate tool available.
Real estate agents will provide clients with a reliable price range when listing homes for sale by pulling comps from MLS in their daily work. For example, agents know if the property is likely to increase in value, if its fair market value is accurate, or if the property price is lined up with other homes in the area.
4. Research the records of public property
Another valuable resource for home buyers and sellers is your county’s public property records. Unfortunately, public property records can be hits or misses when it comes to COMPS. This is because only the last recorded sales price found 10 years ago. Therefore, if you have little or no recent transactions in your local market, you may stick to a real estate comp that does not reflect the current market situation. Public property records can be a good place to start, but additional research is required to find the exact figure.
Most counties allow you to search property records online for free, but you will have to pay for the printed document. Visit the county or city website and search for “property records.” The House address must allow access to property tax information that shows the last selling price and current taxes.
*This is not intended as an evaluation and is not intended to replace the services of a professional, licensed evaluator.
5. Check real estate auctions and foreclosure sales
Another way to find real estate comps is to look at auctions and foreclosure sales that can provide additional pricing data, especially in areas where sales are limited these days.
How to find auction and foreclosure comp: Search for foreclosure lists on sites like Redfin. Check out government resources such as HUD Home Store and county websites. Join a local real estate auction to see what similar homes sell at distressed sales.
Foreclosures and auction sales can be priced low due to the nature of the sale, but can provide useful data points, especially when the general property is common in your area. If you use these as a comp, make sure to compare the condition, repair needs and sales situation.
Who uses real estate comp?
Real Estate Comp is a useful tool for a wide range of people involved in real estate transactions. Here’s a breakdown of how different people benefit from using real estate comps:
Real estate agents and brokers
Agents and brokers work with real estate comps every day. By analyzing recent sales and pending transactions, they can recommend fair market value and adjust their pricing strategies based on current market conditions.
Home seller
Sellers use Comp to help them understand what similar homes in the area are selling and to set prices they feel confident in. Comps also help home sellers clarify their selling points. sale.
Home buyer
Home buyers use the exact real estate comp to make an offer. By researching similar properties in the region, buyers can see whether the listing prices are fair or whether the prices are too high or too low. Comps can also help you develop strategies to negotiate home sales.
Home Appraiser
Home appraisers use comps to determine the fair market value of the property. Since the two homes are not exactly the same, we are comparing recent sales of similar properties in the same area to estimate the value of the home. Lenders need an assessment to ensure that the home is worth the loan amount, making it a key factor in the mortgage approval process.
FAQs about finding a real estate comp
1. What makes a property a good comp?
Equivalent properties must have similar characteristics to:
Annual bedroom and bathroom building type (detached house, condominium, multi-family) with square surfaces in the location (same neighborhood or within a mile radius) Recent sales dates (ideally within the last 3-6 months) )
2. How many comps do I need to see?
Aim for at least 3-5 equivalent properties to get an accurate price estimate. Too fewer comps can cause skew results, but in many cases it can be less relevant.
3. Can I use an active list instead of a house that was sold?
not much. The active list shows what the seller wants to get, but the houses sold reflect actual market value. Pending sales can also provide insight, but sales comps are the most reliable.
4. Why are the prices of comps in my neighborhood very different?
The value of the home depends on unique features such as market demand, home condition, upgrades, lot size, and views. If prices vary significantly, dig deeper into the details of each comp.
5.How often do I need to check for new comps?
If you are selling or purchasing immediately, check for updated comps every few weeks. The market can change rapidly, and recent sales offer the best pricing insights.
Last note on real estate comp
Finding and analyzing the comp can be difficult. However, local real estate agents have the resources and expertise to move forward with the process. They can help you identify a good price to list your home.
Are you interested in how much you can earn from selling your home? Check out Redfin’s Home Sale Calculator to see what your estimated home sales revenue is.
