22 Nov The importance of viewing comparable homes
The importance of viewing comparable homes when you are buying or selling
What is a comparable home?
Let’s discuss what a “comp” or comparable sale is and the importance of viewing comparable homes. This is a term used by real estate agents. It refers to homes located in the same area or development. That is homes which have similar size, condition and features. Also, it very important that these are recently sold to reflect the current market.
How does one find comparable homes?
Next and not least is the quality of the comparable homes. So often I hear “that home down the street sold for much more, can’t I get that”. Or the opposite statement “how can we get that much when our neighbors sold for so much less?”. It is important that an experienced real estate agent finds the right comparable homes to reflect the value of your home. This is equally important whether you are buying or selling.
Viewing comparable homes when selling
The secret is listing your home at the best list price to attract interest. Also, at the same time you want to get the most for your home. We do this by examining comparable sold homes. Once you compare like features and size, you then need to look at the time of year and buyer interest and urgency. As an example, the spring has more buyers with a greater sense of urgency. Once, you have that information you select the asking price. At the same time you have a number in mind what you want to receive at closing. We call this your “net proceeds”. That dictates the sale price. Finally, accurate pricing is important in order to receive a satisfactory appraisal. Without an appraisal for the home sale amount the buyer will in most cases not be able to buy your home.
Viewing comparbable homes when buying
While sellers want to get the most for the sale of the home. The opposite is true for the buyer. They don’t want to overpay. This is especially true if it is multiple offer situation. Looking at sold comps and viewing comparable homes gives the buyer a good understanding what the home will appraise for. And gives the buyer the ability to make an educated offer.
Please contact The Anderson Team with any questions. We are here to help educate you through all aspects of a real estate transaction!