When you are thinking about listing your home on the residential sales market, everyone you talk to will advise you to “look at the ‘comps’.” But no one really explains why you should look at them or ever what they are. A late night search online will lead you to real estate site after real estate site but you don’t have any idea what you are looking for. Well, we can help you. So let’s get to it!
What Are They?
“Comps,” or comparable sales, refer to homes located in your area that are similar in size, condition, and have similar features to the residential property you are selling. Buyers and sellers look at comps differently. Buyers look at comps to decide how much a home is worth and what price to offer for a home they are interested in. While sellers look at comps before listing their home on the market in order to make the price fair. There are several things to look at comps when it comes to comps.
Location is a high priority when it comes to comps. Start by looking for comparable houses in the immediate neighborhood that are similar. If you cannot find a house in the same neighborhood, expand the search to the surrounding areas. When expanding the search, make sure to find something of similar size in the same limits. For example, school districts can affect a price so be sure to stay in the same district. Stay in the same boundary in order to stay within the comps.
When it comes to comparable homes, look for homes that are currently under a “pending” status. These pending houses are live on the market. They are under contract and when the deal is made, it will reflect the most up to date stats on the market. If there aren’t any pending comps in your target area, look for houses that have sold in the last three months. Don’t look at homes that sold more than six months ago because it will reflect a market that has changed since then.
Don’t Analyze Too Much
While comps are a good thing to look into when selling a home, it doesn’t necessarily mean your home is priced too high. Your Clagett Enterprises agent is familiar with the current market and can help guide you to the price that is right for your home. Look at comps with your agent to determine what makes these houses better or worse than your current home.
For more questions about comps in your neighborhood or to list your home with a real estate agent, call Clagett Enterprises today!
Selling a Residential Property with Clagett Enterprises
At Clagett Enterprises, we have extensive experience serving the greater Frederick area and Western Maryland, since 1987. Our team is a full service real estate company that’s ready to help you with your real estate needs. Speak with a Clagett professional at 301-665-6009, or request a proposal for preventive maintenance here.