Just What Is a Real Estate “Comp” Anyway?

Whether you’re selling a home, or buying one, the Comparative Market Analysis is your best friend.

Okay, so you’ve decided to sell your home. Congratulations! Now comes the big question: What price are you going to ask for? This of course leads to a What is a comparable market analysisfollow up question: How do you arrive at that price?

Or…you’ve made the decision to buy a home. Great! So how do you arrive at your asking price when putting together your purchase offer?

In discussing the value of real property, we have to look at it differently from how we might look at selling something personal, like a car. Real estate value fluctuates under conditions much like the stock market, only with a few differences.

Supply and Demand

First of all, the value of property in some respects boils down to supply and demand. Sellers may be able to get away with asking more for their home when there are fewer homes on the market than there are buyers. Does this mean a seller can make up whatever price they wish? No. Home prices still need to fall under Fair Market Value conditions; meaning the price should reflect what the market will bear. Now, what does THAT mean?

Comparing Your Home, Or The Home You Wish To Buy, To Similar Properties

In other words, the only real way, aside from guessing, to determine your home’s selling value is to compare its residence size, lot size, number of bedrooms, baths, and fixed amenities to similar homes that have recently sold within the immediate area. Since most residential communities in Santa Clarita are built within housing developments, or tracts, it is relatively easy to compare similar properties. Comps for homes that do not reside within distinct developments (Older neighborhoods, custom homes, etc.) can still be made by comparing similar homes within a short geographical distance. In other words, a 3 bedroom 2 bath home in Newhall should be compared to a similar home within a mile or two radius.

Be Realistic In Your Pricing Based On The Facts

Now that you have the facts that comps will provide you regarding the selling price of similar homes in your neighborhood, use this opportunity to set a realistic asking price. Listing your home $50,000 over the nearest comparable home will insure it remains on the market without any offers.

The same goes for buyers. We also provide comps for the home you wish to purchase. Going in with a “lowball” offer is a sure way of having it countered, or worse rejected, by the seller.

A Tried and True Method To Guarantee Buyers Come Through Your Door

The Lichen-Hooper Real Estate Team values your business, and it’s our business to insure your home is sold fast, and for top dollar. We have a guaranteed strategy to make this happen. For more details, and to have all of your real estate questions answered, and your goals achieved, contact us for a no obligation consultation today.

Lichen-Hooper Real Estate Team
Keller Williams VIP Properties
25124 Springfield Court, Suite 100
Valencia CA 91355
Office: 661-505-8102
Cell: 661-810-7669
Fax: 661-251-2648

 

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