Understanding Comps for Properties That Possess the Same or Similar Characterist

Posted by Michael Andrews on May 27th, 2019

If you are planning to buy a property, getting access to good comparable property information (real estate comps) provided by local Realtors is key to determining the fair market value of the house. The value helps you decide on a fair offer price of the property. The information is made available to you by Realtors in a formal report called a Comparative Market Analysis (CMA) report that contains details for the subject property and all comparables that usually includes sold price, built year, date of sale, days on the market, area (in square feet), and property features, such as deck fireplace, pool, etc. Yes, there are real estate value estimate websites, which offer “instant home valuation” but the accuracy cannot be compared with a CMA (Comparative Market Analysis), which is an MLS comps analysis from a local Realtor.

MLS Comps by Local Realtors Vs instant home value websites

When it comes to finding the accurate home value, there is no substitute for the knowledge and experience of a local Realtor who is an expert in a particular area. When evaluating property, they take into consideration many factors that even the best online home valuation estimator websites don’t. Using only public data from automated sources without the insights of an expert when buying a property can spell disaster. Relying on such a home value estimate may mean that you are-

• Paying too much for a new home purchase
• Losing thousands of dollars on an investment
• Not qualifying for a home loan
• Paying more property taxes
• Not having enough home owner’s insurance in case of a disaster

Local Realtors closely analyze the current market trends, the condition of the house compared to neighboring properties, facilities and amenities to prepare the CMA report to provide you with a fair estimate of your home value based on the sales prices of similar homes in the area/neighborhood. They offer you the most effective way to find a truly accurate house value.

Importance of Real Estate Comps - For Sellers

For sellers, real estate comps will provide important information they need to price their home competitively in the market. The sellers’ chance of getting a full price offer on their property is more probable when they use comparable information to price the home competitively.

Automated house values can be far off! Order local MLS comps online with an in-depth analysis from a local Realtor in the area to make an informed decision.