Comping Your Property: What is My House Really Worth?
"Comping" a property is the process of finding "comparable sales" in order to determine the value of your property. This is a valuable skill that can put you in a better position to negotiate a fair price for your home. However, many homeowners are not knowledgeable when it comes to accurate determining this information. Below is a guide to help turn you into a house-comping pro!
To comp a property, follow these steps:
Determine the property's address, square footage, number of bedrooms and bathrooms, and any other relevant features or amenities.
Search the address on Zillow, and zoom out to look for recently sold properties in the same area. Try to stay in the same neighborhood, if posssible, and definitely avoid crossing an major streets, highways, or rivers. The ideal comps are within .5 -1 mile away maximum.
Look for properties that are similar in size (same number of beds, bathrooms, and square footage +/- 20%), features, and condition to the property you are trying to comp. These properties are known as "comps" or "comparables."
Look for properties that have sold in the past 3 to 6 months, as these are the most relevant and recent sales.
Analyze the sale prices of the comps and adjust them based on any differences between the properties, such as location, condition, age, and amenities. For example, if a comp sold for $300,000 but has an extra bedroom compared to the property you are comping, you may need to adjust the price upwards to reflect that difference.
Calculate the average sale price of the comps and use that as a starting point for determining the value of the property you are comping. Adjust the price up or down based on any additional factors that may impact the property's value, such as location, condition, and market trends.
Repeat the process with other comparable properties that are currently under contract or listed for sale, to get a sense of the current market conditions and pricing trends in the area.
Keep in mind that this is a simplified overview of the process, and that it can be more complex and nuanced depending on the specific property and market conditions. It's also important to use multiple sources of data and information, such as online real estate databases, local MLS listings, and expert opinions from real estate agents or appraisers, to ensure that you are getting an accurate and comprehensive view of the property's value.
If you have a home that you're looking to sell quickly, effortlessly, and for cash, please submit the property details here and one of our associates will reach out to you with an offer!