Are real estate comps accurate?

Tips when looking for the best real estate comps. Unless you live in a subdivision where a home builder used similar finishes, layouts and materials in all of the homes, no two housing comps in your neighborhood are exactly alike — and even when homes are very similar, no comp is perfect.

Do comps matter in real estate?

House comps are a key component of both buying and selling real estate. They can prevent you from overpaying for a property you’re buying and help you determine a realistic listing and sale price for a home you’re selling.

How are comps determined real estate?

In real estate, the term “comps” is short for comparable sales. Comps are typically determined by comparing the property in question to other properties within a 1-mile radius, which have sold within the last year and have similar attributes (such as the same number of bedrooms, age, subdivision, square footage, etc).

How important are real estate comps?

The dominant reason why comps are so important is pricing. Appraisers provide market value information to lenders. … Appraisers and agents want a good supply of comps in order to select the best. Both professionals have reason to find good comps, so it’s in the buyer and seller’s best interest to trust their assessment.

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How far away do appraisers look for comps?

When an appraiser is looking for comparable properties to determine a price, they are supposed to only look at sales within the last 90 days. Now, if there aren’t enough sales a lender might go back six to 12 months. But the ideal is 90 days.

Are Zillow estimates accurate?

The good thing though is that Zillow never claims to be 100% accurate. The tool has an accuracy of about 80% in all areas. This is because there are no specific variances to throw it off. However, in some home value estimate cases (especially in older neighborhoods), the Zillow estimate won’t be close at all.

How do appraisers determine comps?

In short, finding comps involves looking for recent sales of houses as much like your own property as possible, then comparing your home to them and adjusting your price to account for the differences.

Does a messy house affect an appraisal?

The short answer is “no, a messy home should not affect the outcome of an appraisal.” However, it’s good to be aware that there are circumstances in which the state of your home can negatively affect its value.

What if the seller rejected my offer?

Restructure Your Offer

Everything is negotiable in a real estate deal. Just because a seller has rejected your initial offer doesn’t mean you can’t restructure it and resubmit it. If you’re using a real estate agent to find a home, work closely with her to go over your rejected purchase offer.

What is considered a comp?

“Comps,” or comparable sales, is a term anyone on either side of a real estate transaction should know well. It refers to homes located in the same area and very similar in size, condition and features as the home you are trying to buy or sell.

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How do you price a house based on comps?

Price per square foot: Real estate agents use price per square foot to identify comparables. Divide the sale price of a home by its square footage, then compare that number to your own desired price per square foot.

What makes a property a comparable?

A comparable property, also known simply as a “comparable,” is used by appraisers to determine the fair market value of a home. Comparables are recently sold properties that have similar sizes, locations and amenities as the property being appraised.

Do appraisers look at cash sales?

Basic Guidelines for Comparable Sales. Comparable sales must have closed prior to the inspection date of an appraisal. … Pending sales and listings are only used on the appraisal report to show what the current market is doing; appraisers do not consider these comps in their final opinion of value.

What to do when there are no comps for an appraisal?

If there are no comps for the neighborhood, expand your research to adjoining neighborhoods. The more similar they are in terms of demographics, transport links and housing inventory, the better.

Should I provide comps to appraiser?

Appraisers always search for comps that are most similar to the subject property in a variety of ways- size, location, construction, etc. We do this in order to paint the most accurate picture of what a property is truly worth.