In the real estate business we refer to “comps” frequently whether working with buyers and sellers. This article addresses specific issues for sellers but will also work for buyers.
When discussing pricing a home to sell comparables are usually provided to the seller. On the surface these comparable properties may not mean as valuable to the seller as they should so we must explain further..
What is a good "comp?" A useful (good) comp is a home that is as close as possible to yours (proximity), similarly constructed (age, square footage, materials similar such as wood frame or concrete, same bedroom count as well as garage size, etc.). Then there are other factors such as similar state of update, roof materials and age, pool present, age and condition of air conditioner/appliances, etc. Some of these characteristics can be easily identified but some are simply a "best guess."
These comparables will be extracted from several categories of homes including sold, under contract, active listings and expired properties.
Which of these is most important? They all are important.
The active listings tell a seller who the major competition is while the sold will identify what buyers are paying. Very telling are the expired listings as they reveal what people are not buying!
One thing that must be identified and considered in any comparable property is the condition of sale. If it was a short sale or foreclosure property that must be accounted for in the pricing process as this is not an apples to apples comparison.
So what do all these comps mean to mean?
They serve as a reality check. Ultimately the buyer will determine the real selling price but it tells you the limits of normal.
Further, it frames a marketing strategy that you and your real estate agent will use to sell your home.
If you are considering selling your Viera, Suntree or Rockledge, Florida home call or email me to discuss how I can for you.