Real estate comps allow buyers, sellers, renters, and investors to better understand their local real estate market. Comps provide insight into what properties are selling for in the area, how much competition a property faces in the market, and whether it is a good investment.
What are Real Estate Comps
Real estate comps are an estimation of the market value of a property based on its features, location, and recent sale prices of similar properties in the area. It is the comparison of recently sold homes in the same area to the home being appraised.
In the US, real estate comps are tracked and reported by local Multiple Listing Services (MLS) and government-run organizations such as the Department of Housing and Urban Development (HUD), so it is often the best way to know the price of a home in your area.
How to Find
Finding real estate comps near you is simple, but it will take some effort and research on your part. Here are some tips for finding comps in your area:
- Talk to a Real Estate Agent: The best way to find comps is to speak to a licensed real estate agent who is familiar with the area. A real estate agent will have access to local MLS listings which give the most accurate prices for properties in the area.
- Virtual Resources: There are many online resources such as Zillow and Trulia that provide information about recently sold homes in the area. These sites are a great way to get a general idea of the prices that homes are selling for in the area.
- County Assessor’s Office: If you want to know the exact amount that a home is selling for, you can visit the county assessor’s office. Here, you can find information on recently sold homes in the area and their prices.
What Can You Do With Real Estate Comps?
Real estate comps allow you to analyze the local real estate market and make better decisions when it comes to buying or selling a home. With comps, you can get an estimate of what a home is worth in the area and how much competition it faces in the market. Additionally, comps can give you an estimate of the return on investment when it comes to buying or renting a property.
Real estate comps can be an invaluable tool to help you understand the local real estate market and make the best decision when buying or renting a property. With a little effort and research, you can easily find comps in your area and use them to make a smarter decision for your finances.