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How best to find comps when pricing a home for sale

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How Best to Find Comps When Pricing a Home for Sale in the US

When it comes to selling a home, one of the most crucial aspects is determining the right price. Pricing a home accurately is essential for attracting potential buyers and maximizing your chances of a successful sale. To achieve this, you need to find comparable properties, commonly known as "comps," in your area that can serve as a benchmark for pricing your home. In this review, we will explore the best methods for finding comps when pricing a home for sale in the US.

  1. Online Real Estate Platforms: The internet has revolutionized the way we search for properties, making it easier than ever to find comps. Online real estate platforms, such as Zillow, Redfin, and Realtor.com, offer comprehensive databases of properties sold in your area. These platforms allow you to filter and search for properties with similar characteristics to your own, such as location, size, and amenities. By analyzing the sold prices of these properties, you can gain valuable insights into the market and determine an appropriate listing price for your home.

  2. Local Multiple Listing Service (MLS): The MLS is a database used by real estate agents to list properties for sale. While access to the MLS is primarily limited to licensed real estate

There are several additional resources for finding comps:
  • Public property records: If you want to find the sale price of a specific comparable, the county usually keeps those records.
  • Zillow: Search on Zillow using the Recently Sold filter.
  • Zillow pricing tool: Try this pricing tool to find comps in your area.

How do you pull comps on MLS?

When pulling MLS comps, agents typically search for listings that are similar in size, condition, features, and age. Ideally, these listings are sold within the past six months and within a one-mile radius. In rural areas where distances from property to property tend to increase, a five-mile radius is acceptable.

What do appraisers use to find comps?

Appraisals comps are typically determined by comparing the subject property to others that have sold recently within a 1-mile radius. The property will have similar attributes such as age, subdivision, square footage, layout, etc.

How do you price a property with no comps?

Generally speaking, when it comes to putting a value on a residential property that doesn't have comps, appraisers can do three things:
  1. 1 Go back a little further in time.
  2. 2 Broaden the search area.
  3. 3 Do a cost analysis.

Are Zillow comps accurate?

How Accurate Is a Zestimate? If you ask Zillow, it's very accurate. In fact, Zillow boasts a “nationwide median error rate” for on-market homes of 2.4%. However, for off-market homes, the error rate is more than three times that rate, coming in at 7.49%.

How do you comp out a property?

In short, finding comps involves looking for recent sales of houses as much like your own property as possible, then comparing your home to them and adjusting your price to account for the differences.

How do you run a comp on MLS?

Using Comps To Determine Home Value Use the MLS to pull the values of homes with the same number of bedrooms and bathrooms. Then, use their values to help guide your understanding of the value of your home. Be sure to take any differences in the properties into account.

Frequently Asked Questions

How do I comp properties on Zillow?

Zillow pricing tool: Try this pricing tool to find comps in your area. Simply enter your home address to view recent sales. You can narrow the results based on the ones that are most similar to your home, and then we'll calculate a home value for you.

What is the formula for real estate comps?

This is done by dividing the selling price of each comp on your list by its square footage. Then, add them up and divide the total by the number of comps. To get a reasonable estimate of the price of the subject investment property for sale, you simply multiply the average price per square foot by its square footage.

What is the rule of three comparables in real estate?

The Rule Of Three The first step for an agent preparing a CMA is to find three homes that have sold recently (within the past 6 months at most, but preferably 3 months). These three homes should be as similar and located as closely together as possible.

FAQ

How do you select comps?
In general, comparable companies should be in the same industry and be of a similar size. Other important similarities to look for are: geographic location, revenue, assets, number of employees, growth rates, and profitability.
How are housing comps calculated?
Simply put, real estate comparables – or “comps” – are comparable properties in a specific area that you're looking to buy or sell in. Comps are used to determine the value of a home by comparing it to similar properties sold in the same neighborhood or in an area as close as possible to the house being valued.
How do appraisers calculate comps?
Appraisals comps are typically determined by comparing the subject property to others that have sold recently within a 1-mile radius. The property will have similar attributes such as age, subdivision, square footage, layout, etc.

How best to find comps when pricing a home for sale

How do I find comparable home sales in my area? Real estate agents can perform a sophisticated comparative market analysis to identify comps very precisely. But you can also find general comps yourself by looking online for recent sales in your neighborhood, finding the homes most similar to yours, and checking prices to see how much they sold for.
What is the best site for comparables? The local MLS is usually the best source of comparable home sales, because the information tends to be the most accurate. Zillow's agent directory can help you find an experienced real estate agent who is well-versed in navigating the MLS and finding appropriate comps for your property.
How do you find comps for unique properties? Work With A Real Estate Agent To Pull MLS Comps Working with an agent also gives you the benefit of a professional who is adept at running and interpreting comps. This is especially useful if you're interested in buying a unique property that may be hard to find comparables for.
  • What is a comparable sales report?
    • During the valuation of a property a document called a Comparable Sales Report is created. This report shows the Cost and Sales Comparison Approaches that are used to determine the value of your home. This sheet is often referred to as the “comp sheet”.
  • What do appraisers look for in comps?
    • Comps are used to determine the value of a home by comparing it to similar properties sold in the same neighborhood or in an area as close as possible to the house being valued.

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