The home you decide to buy is the place you will live for years to come, and it is also the place you will be responsible for maintaining. If you want to choose the right home and pay the correct price for it, you might benefit by comparing it to comps. What exactly is a comp, though, and how can you use them when buying a property? Here are the answers to these questions.
What Is a Comp?
In real estate, the word "comp" is used frequently, and it is short for a comparable home. Comps are homes that meet the following features:
- They are similar in size, location, and characteristics to the home in question.
- They sold within the last six months or so.
Real estate agents, appraisers, and lenders all use comps when analyzing home values, and you can use them when buying a property.
How Can You Use Comps When Purchasing a Home?
If you want to make sure you are paying the right price for a home, you can use comps in your research. To do this, you will need to find some first. After finding them, you should carefully view the sales prices of the properties. Next, you should compare the home you want to buy to the comps.
If the home you are buying is slightly bigger, you can add a little bit of value to the house you are buying. If it is somewhat smaller, you could decrease a little off the amount. You can add or subtract value to the home you want to buy by comparing all the features it offers to those of the comps. You can do this with layout, size, condition, age, and location.
How Do You Find Comps?
There are several ways to find comps, but the easiest way is by asking a real estate agent for some. Agents generally look at the MLS to find comps. They may also search public records and access real estate websites. You can do these things yourself if you wish, but it is easier to let an agent find them for you.
If you would like to compare homes while you search for the right one to buy, talk to a real estate agent. Your agent will know how to do this and can find comps for you.
To learn more about homes for sale in your area, visit a real estate agency in your city.