Table of Content
By compiling a few similar properties, the goal is to determine your home’s current market value. When in doubt, consult a real estate agent who can do their own search to find comps for a house and help you accurately price your home. Your goal is to find the average value per square foot of your comps, giving you a base number to estimate the market value of your own home.
In today’s hot market, with some homes selling in just a few days, a six-month window can feel like a lifetime. So you may want to think about looking at only the most recent activity — the past two months, for example — to get a pulse of the market. Set the search to the same neighborhood you live in and to similarly sized homes, as well as the type of property you’re comparing. If you’re selling a condo, for example, search for condominiums, not single-family homes.
Why Use MLS Comps?
Once you put in all your must-haves, the database will produce a list of homes that fit all or most of your criteria. These homes will also be similar in terms of square footage, number of bedrooms and other features. Your agent can then advise you on how much to offer based on the comps and general trends in the housing market. A seller’s agent can offer unbiased listing recommendations based on local comps. For example, your agent may recommend a starting price that’s a little higher than the comps to create some wiggle room in the negotiation process. Real estate comps provide a few critical insights when it comes to selling your home.
Once you select your site of choice, you’ll need to narrow down your search. You want to find three to five homes that sold within the past six months in your area. Try our free Agent Match tool now to request a comparative market analysis on your home. We analyze over 27 million transactions and thousands of reviews to determine which agent is best for you based on your needs.
Eichler Homes: Bringing Mid-Century Modern to the Masses
Too high a price for the market value of the home could keep potential buyers from viewing the property. Keep in mind that you might not be able to sell your home for what you bought it for, depending on the market. When looking at recent sales in the area to determine the value of the home, recency is a big factor. Comparing your subject home with a house that sold a month ago is going to be much more accurate than if you’re looking at one that sold 2 years ago.
Typically, you’ll need to know the street name or a parcel number to begin your research. Or, you can go to the local courthouse or county records office. Public records are another good source, though you can’t filter them like a website. It can also take a while for recent sales to update, though the sale price will be accurate.
Ask a real estate agent for a comparative market analysis
Real estate agents use comps to conduct a comparative market analysis . A CMA is an examination of recently sold local properties that are similar to a home you’re interested in buying or selling. This helps an agent determine the market value of your property. One of the most important steps to completing the sale of a home is the appraisal. This process, usually initiated by the buyer’s lender, calls on a professional appraiser to determine the market value of the house in question.
A CMA isn’t an appraisal but it can often accurately determine a home’s current estimated value. Searching for the name of the city or town along with the word “assessor” online should lead you to the assessor’s website. Generally, they have accurate data about the number of beds and baths because it’s used to calculate taxes due. On the top of the results page, you can filter by property type (house/condo/farm ranch/land), the number of bedrooms, bathrooms, and other criteria. Some online sites allow you to search for recent sales in your area. There are several online tools that are helpful for locating housing comps in your area.
We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. Hosted by expert investor Than Merrill, you'll learn how these time-tested strategies can help you to find success in real estate. Find the price per square foot by dividing the sale price of a property by its square footage and compare that number to your own price per square foot. Many real estate investors have found workarounds to this challenge, mainly through symbiotic relationships with licensed agents.
Comps sold within the last 60 days are preferable because their sale price reflects current market conditions. However, recent sales aren’t always available, so you may have to pull comps from as long as six to 12 months ago. Consider hiring a professional appraiser to give you an unbiased appraisal of your home’s value. The comparable properties consist of homes that are located very close to yours , of a similar size and quality. The former is generally considered more accurate, simply because list prices can be very subjective. No matter how much time you spend looking at real estate comps, assigning a value to a home isn’t an exact science.
There’s a lot of information to gather as you start looking for your perfect home. Home and lot size – Many homes are priced per square foot, so finding one of similar size makes for an easier comparison. It’s preferable to find a house within 10% to 20% of your home’s size.
In a subdivision, you may find sold listings with identical floor plans. Otherwise, Dewling advises finding homes that are roughly the same size with floor plans similar to yours — like a ranch home if yours is a ranch. Understanding value helps you set a price when you’re selling. After all, you don't want to ask too little and leave money on the table, or ask too much and hold up your sale.
Ideally, urban comps should be within a couple mile radius. If they’re in the same school district or near the same amenities such as parks or public transport, even better. When a homeowner updates a bathroom or renovates a kitchen, their home value typically increases. Consider any renovations or upgrades you see in your real estate comps and how those compare to your home’s features.
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.
What if your comps don’t measure up?
She is also a poet and recipient of the Discover/The Nation Award. Her work can be found in literary publications and on various blogs. Reynolds holds a Master of Arts in writing and literature from Purdue University. As the owner, you naturally get to decide the price of your home.
The MLS provides the most up-to-date and easy-to-access information when it comes to pulling comps, but it’s restricted to licensed real estate agents and appraisers. To get your hands on this juicy real estate comp information database, you’ll have to engage the services of a real estate agent. Working with an agent also gives you the benefit of a professional who is adept at running and interpreting comps.
No comments:
Post a Comment