Understanding what real estate COMPS

UNDERSTANDING WHAT REAL ESTATE COMPS ARE AND HOW TO EASILY FIND THEM IN 2021

Danon Burnside

Every trade has its tools and practices that are peculiar and which define interactions amongst its leading players. In real estate, COMPS is a tool that both buyers and sellers regularly use to get optimal value from any existing market niche. Comps is a shortened version of the term, Comparable Sales. Comps refer to the information and conclusions reached by comparing similar properties located in the same locality and having similar characteristics such as size, condition, and features.

By comparing similar properties with the ones to be sold or bought, one can develop the ideal and most competitive price or offer in a current situation. All the players in real estate use comps: property sellers, property buyers, appraisers, and real estate agents. The main issues to weigh in comps are:

1. LOCATION

The best and optimal comps for any property are as close as possible.

Location is of top priority when valuing a property. Location can be as close as less than a mile depending on the locality (rural or urban), and it can be widened incrementally until the ideal is achieved.

2. SIZE

Size is the measure of the property and the land (lot) in square feet units. The value of any property depends on the location, but when all other conditions remain constant, the greater the size, the greater the value. The size of internal features such as bedrooms and bathrooms also matter in Comps.

3. CONDITION

Condition refers to the physical condition of the property and its attendant features. A good example is a distressed building as opposed to a newly renovated one.

4. AGE AND STYLE

Newer homes have a higher value than aged ones despite their location and size. Some uniquely styled properties may stand out of their class. The style could be a value attached to their architecture or added features.

5. FEATURES AND AMENITIES

These include swimming pools, solar or green energy installations, walk-in closets, exquisite finishes, and specially designed interiors. All these push the value upwards.

6. NEIGHBORHOOD

The locality characterizes issues such as access to transport services, walkability, crime rates, views such as seafronts and mountains.

7. PROPERTY TYPE

A mansion is different from a holiday villa, a condo, an apartment, a single-family house, a bungalow. All these will be evaluated differently.

Whether you are an investor or a realtor, buyer or seller, Comps information is exceedingly helpful because of its empowering value. Here are four ways of finding Comps in the year 2021.

• Checking public records by establishing contact with county departments and offices that are custodians of such records. These can be accessed online or, in many cases, by a physical visit. • Working with a realtor. The best way to learn the real estate business’s ropes is to collaborate and work with people with vast experience in the field. • Employ real estate software. As the industry embraces information management tools and technology, there are currently highly developed computer and mobile applications that can access a vast collection of Comps information at a click of a button. • Employ the services of a home appraiser experienced in the art and craft of home appraisals and has excellent knowledge of the locality.

Work cited.

https://www.mashvisor.com/blog/how-to-find-real-estatecomps-2021/ https://www.zillow.com/blog/what-are-comps-179631/ https://www.bankrate.com/real-estate/how-to-find-real-estatecomps/