3 Things To Know Before Looking At Comps

3 minute read     By Jason Gelios - Realtor

Comparable properties, or more commonly known as comps, are properties that are within a certain area from your property. Comps are also properties similar to yours that can be used to evaluate a selling price for a home seller.

In this article, I share the top three things to know before viewing comps to evaluate where your house is in relation to the market.

Number one: Lot Size
Lot sizes can vary depending on where the homes are located and what the builder did when the land was developed. Be sure to make sure you know the dimensions or acreage of your lot so that you can research comps effectively.

Number Two: Renovations
Renovations can play a big part in evaluating comps. Is your house updated with all the furnishings while other homes in your area are not updated? If possible, know what comps have comparable renovations and/or updates that are similar to yours.

Number Three: New Construction
In some markets, the cost of land for a builder has been at a discount. This typically means that the cost of a newly built home gets closer to what a used home would sell for. This would certainly affect a sellers home value.

These three things are a good start for you to view comps and get a rough idea of what a sellers home could be offered at to the market. It is always a great idea to have a professional real estate agent provide a formal analysis of your home and comps to determine what the market might pay for the home.