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Saturday, April 26, 2014

Competition and Comps - What is a buyer to do?

One of the most valuable tools a real estate agent has at their dispal is "the comps."  For those not familiar with the lingo, "comp" refers to comparables.

For more background on comparables please read "What is a comparable?"  and "What is a valid comp?"

When working with buyers I often hear the customer direct me to "pull the comps"  which I gladly do right away.

In the Brevard County, Florida market with increasing sales and a balanced inventory, I like to look back about three months ideally.   In some neighborhoods like the 55+ community of Indian River Colony Club where the maintenance free lifestyle and restricted access are a factor I may have to go back further within the community to find comparables.

A review of comparable properties serves a couple of purposes.

The sold comparable properties identify which direction the market is headed.  In our market the direction is upward as in rising prices.  [Brevard County, Florida Residential Sales March 2014 vs. March 2013]

A review of the comparable active listings tells the buyer (and seller) how competitive the market is at the time.   I also include the under contract but not yet closed listings as well here.

In the current Brevard County, Florida market there is competition although not the frenzied atmosphere of eight to ten years ago.  Rather, the competition varies in intensity based on the location within the county.  It is still all about location.

So what does a buyer do with the comparables?   Understand where the market is going and what the real comparable properties are selling for now - not six to twelve months ago.

Then, if serious, make an offer like you mean it.  When there is competition, the attitude needs to be, at a minimum, make a serious lets talk offer that can improve your chances of success.

Considering buying or selling a home in Brevard County, Florida?  Call me at 321-693-3850 if I can help in any way.

If you prefer, send me an email.

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