It doesn’t matter if you are on the buying or selling side of a home purchase, there is one thing that you will both rely on, comps. The comparable sales of homes that are similar to yours and in your area will help you whether you are buying or selling. It is important to understand the role of comps in the home buying and selling process. The Tina Peterson Team is here to talk about comps, what they are, and how they can be helpful when buying or selling a home.
What is a Real Estate Comp?
For many people who aren’t well versed in the real estate world, you might not know what a real estate comp is. It is a house that has sold in the area near your home that has similar features to your house or the house that you’re looking at to purchase. Sale prices of the houses in your area can give you a good idea of the fair market value of the home you’re trying to sell. These homes can provide you with critical insight into the value of the home you’re looking at purchasing as well as a home you’re trying to sell. It can help determine the final price you might settle on with a seller or give you a good idea of how much profit you can expect to get out of selling your house.
People Who Need Information on Real Estate Comps
There are several people that need the information that is provided by a real estate comp.
- Sellers: Setting the right price when you’re listing your home is going to play a big role in how quickly you sell the house. If the house is priced right, you will find that you sell it much faster. Comps can help you get the most out of the sale and get it sold as quickly as possible.
- Buyers: Comps will give you the information you need to ensure you aren’t overpaying for a home. They can also help you know if the price you’re paying for your home is one that is a good deal for you or not.
- Real Estate Agents: It is difficult to help sellers price their home when you don’t have a good understanding of the comps in the area.
- Appraisers: Evaluating the worth of a home is done using several tools, one being the comps in the area.
Tips to Find the Best Comps
Here are some tips to find the best comps:
- Use a real estate agent as they have the most information about the current market and neighborhoods.
- Consider the style, size and features of the home.
- Stay as close to your neighborhood as possible as location plays a big role.
- Look at houses that have been recently sold rather than sold a year ago.
Residential House & Condo Property Sales in Greater Ann Arbor, Brighton, Highland, South Lyon, Milford, Pinckney & Howell, MI | Southeast Michigan Real Estate
If you’re looking to buy or sell a home, make sure you contact The Tina Peterson Team to help you find the best fit. Call us today!