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Tuesday, November 20, 2012

What is a "valid comp?" Why is it important?

I have always been one who tells it like it is..... not in a brutal way but still just the facts. In the real estate business there is an expectation of fact based recommendations.

The facts I am speaking of are the  comparables ("comps").

Comparables serve as a reality check.  Within a given neighborhood or area (like Viera or Suntree) there is a limit to what a buyer will pay for any given property.

Valid comps include a couple of key characteristics.
  1. Physical traits. Homes in close proximity to the subject property possessing similar qualities like age, square footage, materials similar such as wood frame or concrete, same bedroom count,  garage size,  views and the like.
  2. Circumstances.   Often called arms length transactions, these are sales where there is no special circumstances or financing.  No distressed sale, no special relationships (selling to son or daughter), no liquidation quick sales, etc.
These valid comps are the best measure of what a buyer should pay and a seller should expectThey are also what an appraiser will use when evaluating the property for your lender.

At time I think buyers appreciate these facts more than sellers.  And then sometimes I think sellers appreciate these facts more than buyers.

Considering selling your Viera, Rockledge or Suntree home?

Contact me for a free market analysis.  I promise you one thing - a fact based recommendation!

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