As a seller and buyer in real estate one will often hear of the term ‘comps’, or in layman’s terms Comparable Sales. The definition of comps is pretty basic, which is comparing the most recent sales in an area that are comparable to the property in which is to be listed for sale to determine the listing price or to compare a home that a buyer wishes in which to put an offer in on, to determine if the listing price is based on the market value based on current sales prior to making the offer.

Comps are truly the most accurate way to determine the market value of improved or unimproved residential property with other methods available to determine the market value of other dwellings such as commercial, industrial and multi-family structures like apartment buildings but these methods are different in determining the market price of these different types of real estate over residential and vacant land.

If you are unsure as a seller as to what to list your property for, your best bet is to seek the advice of your real estate agent. Only your real estate professional has the finest tool available, MLS or the Multiple Listing Service to provide you with accurate comps based on the most recent closings that are comparable to your property. If you have any questions or comments in regards to the results of the comps report that is presented to you, don’t hesitate to express these to your real estate agent, and if you question the suggested price of your property to your real estate agent, remember that it is your property, your home in which you want to get the best and most reasonable price for.

It is important to realize that your real estate agent is in your corner of the ring, and has the advantage due to their expertise in real estate trends over the years to know how the real estate pendulum swings based on market changes. They are well versed in all aspects and have a wealth of real estate knowledge under their belt. This is why when seeking advice on how to price your property, it is best to ask a real estate agent and not to hire a real estate appraiser, as the appraiser merely applies his or her knowledge to justify the value or purchase price on the property because of a mortgage lender’s requirements with the real estate agent who determines the price of the property in question based on current sales in the immediate area based on properties of like kind. Be prepared to receive up to five comparables in which will help you determine the sales price of a property or the listing price of the property you want to put on the market.

Typically, comps are fairly easy to obtain especially in a seller’s market. But if it is a buyer’s market it can be somewhat tricky as comps may be few and far between due to a high supply and not much demand. This can create an issue with lending institutions as their requirements are that they need to see a recent history of sales in that specific area. In addition, those who make pretty substantial additions and modifications to their properties make it difficult as well, because if there are homes surrounding the subject property that have closed recently and do not have the upgrades comparable to the subject property it can be difficult to determine the sales price or listing price.

In any real estate venture, always seek the advice of your real estate professional who has the necessary tools to determine the best sales price, best listing price, and best marketing tactics to sell your home quickly or to find you the best home that suits you and your family’s needs. Remember that your real estate agent is a plethora of information and works only for their buyer’s and sellers best interests.

Author Bio: Tim Ryan specializes in helping buyers find great deals on Naples Real Estate. You can visit Tim\’s website where you can find thousands of Naples homes for sale.

Category: Education
Keywords: real estate, comparable sales