What Are Comps? A Way to Pin the Right Price on a Home

When you're selling your home, it's important to price it right. You don't want to ask for too much and scare buyers away, but you also don't want to ask for too little and lose out on potential profits. So how do you know what the right price is? ????

One way is to use comps. Comps (comparable sales) are real estate prices of similar homes in your area that have sold recently. By looking at the comps, you can get an idea of what people are paying for homes like yours, and price your home accordingly. In this post, we'll discuss what comps are and how they can help you pin the right price on a home! ??

What are comps and why do they matter when pricing a home?

Comps are real estate prices of similar homes in your area that have sold recently. The main reason why comps matter is because they give you an idea of what people are paying for homes like yours. This information is valuable when pricing your home, as you don't want to overprice or underprice it.

For example, let's say you have a 3-bedroom, 2-bathroom home that is 1,500 square feet.

If the average price per square foot in your area is $200 and comparable homes are selling for $300,000, then you would price your home at $300,000.

On the other hand, if the average price per square foot in your area is $250 and comparable homes are selling for $325,000, then you would price your home at $325,000.

As you can see, comps can help you come up with a fair price for your home. Without them, it would be more difficult to know how to price your home correctly.

How to find comps for your area?

There are a few ways that you can find comps for your area.

One way is to look up recent real estate sales in your county recorder's office or assessor's office. This information is public record, so you should be able to find it relatively easily.

Another way to find comps is to ask a real estate agent. Real estate agents have access to a multiple listing service (MLS), which is a database of homes for sale and homes that have sold recently. The MLS will also show you information about the homes, such as square footage, number of bedrooms and bathrooms, and so on.

You can also find comps online. Websites like Realtor.com and Zillow.com have listings of homes for sale and homes that have sold recently. You can use the filter options to only see listings that are similar to your home in terms of size, number of bedrooms and bathrooms, and so on.

What to look for in a good comp?

When you're looking at comps, it's important to find ones that are as similar to your home as possible. The more similar the homes are, the more accurate the comp will be.

Some of the things you should look for in a good comp include:

? Location: The home should be in the same general area as your home.

? Size: The home should be similar in size to your home.

? Style: The home should be the same style as your home. For example, if you have a ranch-style home, you should look for other ranch-style homes.

? Age: The home should be around the same age as your home.

? Condition: The home should be in a similar condition as your home.

If you can find comps that match all of these criteria, then you're on the right track!

How to use comps to price your home?

Once you've found some good comps, you can use them to help price your home.

The first step is to find the average price per square foot of the comps. To do this, take the sale price of each comp and divide it by the square footage of the home.

For example, let's say you have three comps:

1?? Comp 1: $250,000 sale price, 1,500 square feet

2?? Comp 2: $275,000 sale price, 1,600 square feet

3?? Comp 3: $300,000 sale price, 1,700 square feet

To find the average price per square foot, you would add up the sale prices and divide by the total square footage:

(250,000 + 275,000 + 300,000) / (1,500 + 1,600 + 1,700) = $275,000 / 4,800 = $57.29 per square foot.

Once you have the average price per square foot, you can use it to price your home.

For example, let's say your home is 1,600 square feet. To find the price of your home, you would multiply the average price per square foot by the number of square feet in your home:

$57.29 per square foot x 1,600 square feet = $91,264.64

This is just an estimate, of course. The final price of your home will depend on other factors, such as the condition of your home and the current real estate market. But using comps is a good starting point!

Comps are a great way to price your home correctly! By finding comparable homes in your area and looking at the prices of those homes, you can get a good idea of how much your home is worth. This will help you come up with a fair price for your home and make sure that you don't over or under-price it.

Comps are a valuable tool that you can use to price your home correctly. By taking the time to find good comps and calculate the average price per square foot, you'll be in a much better position to sell your home quickly and for a fair price.

Ok, this was a long one, but here’s a quick recap! ?

Comps are comparable properties used to help determine the market value of a property. They can be found by looking at recent sales in the area or by analyzing active listings. When you’re looking for good comps to price your home, there are several factors you’ll want to consider, such as location, size, features, and condition.

If you need help pricing your home accurately, contact us today at ? 262-328-6444 or ?? [email protected] to get in touch with a top listing agent in the area who will be happy to assist you. Thanks for reading! ???

#TheSoldBySaraTeam #KellerWilliamsPrestige