The term comps refers to comparable properties. Whether you are buying or selling, you will want to know the sales price for similar properties. It's important to note I said sales price, NOT list price. You may think that the pricing of nearby properties is the only factor when you're looking at comps and trying to set a price for your listing. But, it's actually a bit more complicated. Here are five things that affect comps that you might not be aware of.
Lot Characteristics: The size of a lot can significantly affect the price a buyer is willing to pay for a piece of property. You can understand how identical homes, one on a 1/2 acre lot and one on a 1/2 acre lot would sell for vastly different figures. Also, it is important to think of the topography of the land. A flat, cleared lot is much easier to build on than a steep parcel with a river running through it. Other considerations include the zoning of the parcel and if the lot is located within the flood zone.
Renovations & Improvements: Recently renovated homes typically sell for more than homes that haven't been updated in a while. If you've recently upgraded your home-especially sought-after upgrades like the kitchen or master bath-your home should be priced appropriately. Other improvements such as an outdoor kitchen or a pool may also add value to a property. Layout is also important. Most buyers these day prefer an open floor plan. Houses with lots of ups and downs, sunken room, or sets of small stairs tend to sit on the market longer than those that don't.
Location: Nearby amenities, safety, schools, and noise levels can vary greatly within a neighborhood. Homes in more desirable parts of the neighborhood will sell for a higher price, all else being equal. A property backing to a busy street is unlikely to sell for as much as the secluded home in the rear of the community backing to a natural preserve. Also consider school districts. Some neighborhoods like Barton Creek in Austin are divided with one half of the neighborhood feeding to one school district (Austin ISD), and another feeding to a different school district (Eanes ISD).
ADOM: You want to look at the Average Days on Market (ADOM) when you are looking at comps. This figure shows you how long the property has been for sale. It is particularly important to look at this number when you are pricing your property to sell. Are you willing to have your house sit on the market for months or do you need to sell quickly? You also want to look at the list date. Sometimes a property has sat on the market for a while because it was simply listed at the wrong time of the year.
Listing price vs. sale price: This is the most important item to consider when determining the price you will pay or the price you will list your property for. You must look at sales prices, not just list prices. The list price for a house that is currently being offered for sale is simply not reliable data. The property has not sold. A good comp is a property similar to yours that has sold in the past 90 days. Sometimes, you can use a property that meets that criteria that is pending. A pending property is one that is under contract, and has not closed. If you can roughly determine the price that was offered, you can include this figure in your calculations. However, you should not base the price of your subject property solely off data that may or may not be accurate.
Author:Erika Albert Phone: 512-779-7597 Dated: March 22nd 2017 Views: 50 About Erika: Hello this is my description...
Trust eXp Realty and our team of real estate agents to help you find homes for sale or to sell your current home. We recognize the level of service that the mobile consumer demands. You have information. You have dreams. We possess experience, integrity, and innovation. Together we create leverage to make your dreams a reality.
Figuring out when to plunge into the real estate market can be qu
"ITALIANO Siamo molto felici di aver incontrato per caso la signora Michelle Burns, vostro agente, con la quale dopo aver avuto un appuntamento nei vostri uffici, abbiamo trovato la casa perfet ta, la vostra agente Burns, è stata molto brava anche nel capire quello che stavamo cercando e molto paziente nel tradurre tutte le nostre richieste in quanto noi non parliamo americano, e grazie alla sua disponibilità e alle tecnologie moderne abbiamo comunicato a lei e lei con noi per tutto quanto ci era necessario, complimenti ai vostri uffici sempre tutto il personale compiaciuto, e pronto, complimenti al vostro Agente Michelle Burns, per la sua Professionalità, sempre ben vestita, sempre educata, pronta ad ascoltare senza mai voltarsi, Grazie Mille. INGLESE (GOOGLE TRANSLATOR) We are very happy to have met by chance Ms. Michelle Burns, your agent, with whom having had an appointment in your offices, we have found the perfect home, your agent Burns, was also very good in understanding what we were looking and very patient in translating all our demands because we do not speak American, and due to its availability and to modern technology we talked to her and she with us for all that we had to be, congratulations to your offices all staff always pleased, and ready, congratulations to your Agent Michelle Burns, for his professionalism, always well dressed, always polite, ready to listen without looking, Thanks a lot. "