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In some areas, a property’s value can change from neighborhood to neighborhood, from block to block, or even within 100 yards. Start by looking for comps within a 1-mile radius and move out to 5 miles if necessary. Expert knowledge can help you understand nuances in a neighborhood, so take your time or ask an agent to help you.
If you’re looking to buy and don't want to pay too much, finding good comps in the area can help you understand what the home is worth before you make an offer. Public records contain information about home sales prices. Most counties allow you to search property records online at no cost – although you may need to pay for printed documentation.
Why Use MLS Comps?
This “how to find comps for my house” crash course will teach you how to find comparable sales and calculate a rough estimate of your home’s home’s value. Then you can decide if you’d like to go it alone or enlist a pro’s help. If a selling price you find online looks too good to be true, go to your county or municipality real property office .
This information will help you set the right list price or bid. Start the process of setting a list price with a free home value estimate. HomeLight’s tool uses public data, local sales records, and your home’s last sales price to provide a preliminary range of value in under two minutes.
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The above information is a great starting point when analyzing comparable properties, and the side-by-side format will allow you to compare relevant information directly. You can add additional rows for property descriptions, tax values, and more as you see fit. I recommend walking through an example yourself and then saving the file as a template for future use. If you want a more visual example, try checking out the examples provided by SampleTemplates or The Balance. Picking the correct price point is critical to a successful deal.
You have options when it comes to finding comps, but keep in mind that some are more accurate than others and some require a little help to get them. Almost everyone in the real estate business uses comps, but for different reasons. Lori Lovely edited the Real Estate Home section for the Indianapolis Star and covered the annual Dream Home construction and decor for Indianapolis Monthly magazine. Save this search to get email alerts when listings hit the market. Consider houses built within a 5-year range of your home being built. It’s often assumed that an older home needs work and hasn’t been updated.
Ask a real estate agent for a comparative market analysis
Most lenders require an appraisal to make sure the home is worth the purchase price, but some sellers also use an appraiser to accurately price their home. The old adage holds that the three most important things in real estate are location, location, location. But judging by the importance levied on house comps, comparable sales may be the most important thing in real estate pricing.
Sometimes you need to find a comparable, or “comp,” for a house, meaning the value of other, similar homes in the area. This might be because you’re house shopping and want to determine what kind of offer is reasonable for a house. Or you might be thinking of having your home appraised because you’re considering refinancing, and you’re wondering what the appraised value might be. But appraisals go much deeper than simply looking at neighboring properties.
If two homes have the same number of bedrooms, but one has substantially more square footage, it paints a different picture of the home’s actual size. Similarly, if two homes have vastly different lot sizes, they aren’t truly comparable properties. Use comps to understand what similar homes in the area are selling for, allowing them to set a list price they feel confident in. Comps also help home sellers clarify their home’s selling points which will be highlighted in the home’s description when it’s listed for sale. Recent data is the most useful, so start with one month to see what pops up, then widen your time frame to transactions completed in the past three or six months. In a busy seller’s market, you can even look to see comps in your area within the past week.
As you may already know, understanding the prices of similar homes in the area will help you decide how to handle pricing yours. Another, perhaps less obvious, key benefit is that it can help provide clues on what selling points to highlight when you list your house for sale. IDX information is provided exclusively for personal, non-commercial use, and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. The listing broker’s offer of compensation is made only to participants of the MLS where the listing is filed. Understanding real estate comparables and the state of the market in your local area is essential. It can help you make an informed decision about buying or selling a property.
This will indicate the home’s price per square foot, or PPSF, a frequently used metric in real estate. You can then take the average PPSF of all the comps on your list, and using that dollar value, multiply it by the number of square feet in your home. It is important to understand how comps are pulled, regardless of how you gain access to the MLS. Having a credible method for conducting market research will help justify offers and listing prices on properties. The right process can also make your research run smoothly and more efficiently.
Apply online for expert recommendations with real interest rates and payments. According to Fannie Mae, at least three closed comps are required. Condition of the home – Not only do you want to find a home near the same age and condition of your home, but a comp should also take into consideration upgrades, remodels, and additions. REALTORS® are the go-to source for all of your real estate needs. Sale calculator to see what your estimated home sale proceeds could be. Cost of the home appraisal will be covered by the homebuyer.
The number of rooms, bedrooms, bathrooms and additional living and outdoor spaces can affect real estate comps the most. “These can shift comps numbers considerably,” Coley said. There are various ways to find comps for houses, whether you’re doing the research yourself or getting the help or advice of professionals.
Pay close attention to photos to compare finishes and upgrades, and read the listing description to see what’s included that you won’t find in an image. Look for the following signs that the sales you’ve selected are accurate comps. For some listings, if you scroll down on the detail page you will see an image carousel showing off-market homes sold near the property you selected. Schools can also be a big factor, depending on where you live. Other things that can swing the numbers include walkability, parking spaces , curb appeal, view and location. “You can sometimes cross a street and the values can be completely different,” Hovsepian said.
What if your comps don’t measure up?
From finding an agent to closing and beyond, our goal is to help you feel confident that you're making the best, and smartest, real estate deal possible. If you’re not under contract to buy a particular home, you won’t have access to past appraisals — appraisal reports aren’t public records. However, if you’re under contract for a particular home, your mortgage lender will order an appraisal as part of the closing process. After it’s completed, you’ll have access to the appraisal report. Our research indicates that the top 5% of real estate agents across the U.S. sell homes for as much as 10% more than the average real estate agent. If you price it right, your home will sell — probably faster and for more money.
Realtors do not normally charge for showing someone the comps; however, just getting the comps isn't enough, you need to assess them. Just like real estate agents, appraisers usually check the MLS listings. They look for recent sales of homes similar in size, location, features, age, and amenities. But online tools may have their limitations, especially in areas where homes are further apart or where subtle differences in location can have a big effect on home value. Online sites also may not differentiate between homes in better or worse condition, cautions Albert.
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