Table of Content
You might get lucky and find that this information is available online, but otherwise, you will have to pay a visit to the courthouse. The only problem with pending sales is that a real estate agent does not know what the pending sale will close at until it does. You could make an educated guess if the property sold quickly. The MLS can help the real estate agent stay on top of the local trends in the market and find the best selling price for their clients. They can help the buyer decide how much to offer for the home they like. The comparables should help ensure they don’t offer more than they should.
Buyer's agents will try to grind you down on the price in order to get their buyer a better deal. If you are armed with the facts found in our comps report, you will be confident in your pricing and be able to educate the agents on the home value. Using a REALTOR is the best way to determine the market price of a home. Start this process by viewing the third-party valuations and then contact a Realtor to determine a reasonable sales price for a home. But before you head out the door and start comparing your home with the rest of your neighborhood, heed these tips when looking for comparable sales.
Similar Condition
Regularly referred to as “comps,” a comparable home sale is another home that recently sold near yours with similar square footage, finish out, floor plan, and amenities. The sales price of comparable sales helps both seller and buyer agents recommend a sales or purchase price for the listing. Real estate agents use comps from the local multiple listing service to create a comparative market analysis . It’s a collection of nearby comps, put together to help an agent and seller decide on a good listing price.
We calculated how much Austin homes are appreciating each day of 2021, and larger homes with pools were appreciating more than those without pools, often in the range of $5,000 a day. Maximum Real Estate exposure is a marketing site designed to give Massachusetts home seller’s a dominant online presence. If you own a townhouse, don’t check single-family homes or multi-families. Your comparable properties need to be as similar as possible, so only look for those same classifications of homes. Keep in mind your comparables need to be stylistically in the same family to be a useful comp.
What happens if an appraiser or real estate agent cannot find comps?
Birmingham, AL. Although they are the same house, just listed for sale in different geographical areas, the value of each home is largely influenced by individual housing market conditions. While an appraisal waiver can be a powerful tool when competing in a multiple offer situation, the buyer has to have the money to make up the difference. Unfortunately, some agents and lenders haven’t prepared their clients for this possibility, leaving many buyers in a difficult position.
Unless you are working with a neighborhood specialist who is intimately familiar with the interior of homes in a specific area, it can be hard to determine the shape a comparable sale is in. For example, a stripped foreclosure home owned by the bank, missing its appliances and copper plumbing, is worth much less than a turnkey home, updated with new appliances, carpeting, and paint. A home must satisfy several factors, such as proximity, age, condition, lot size, square footage, and more, to be considered comparable. Perhaps the most common mistake I see made by real estate agents and homeowners alike when conjuring an asking price for a ...
Property Description
Listings should have plenty of photos for you to check to see if the home looks similar to yours. Do the comps have new kitchens and baths that could account for a higher value than your home? The more of these comparable details that aren’t similar to your home, the less likely the property will be a good comparison. To find fair comp homes to yours, you need to look at the properties’ details without letting your emotions cloud your view. It is very easy to want to believe your home is better and worth more than other properties, but you need to ignore this bias. You can’t just double the price if your home is double the size of the comp.
Ultimately, the goal when searching for comparable sales is to be able to compare apples to apples, rather than apples to oranges. There are a variety of ways to find comparable home values, and many investors will make use of more than one method when running their numbers to ensure as accurate of a value estimate as possible. These methods include searching for the prices of recently sold properties online, or driving around a target neighborhood and attending open houses.
For example, agents know if properties have likely increased in value, if the fair market value is accurate, or if a property’s price is out of line with other homes in the area. One way to find comps in your area is to use an established real estate listing website for your research. Redfin offers an easy way to identify recently sold homes in your neighborhood quickly. As you can see, there are a lot of variables that go into determining the right comps for your listing.
Homes appraising for at least the purchase price is one of the common contingencies in real estate contracts, so it behooves an agent to assist the appraiser where necessary. There are still some options if you are looking for comps without a real estate agent’s help and their access to the MLS. You can get comps without a Realtor, but it is far more challenging.
The latest real estate investing content delivered straight to your inbox.
This does not mean that the comparable must be identical to the subject property, but it should be competitive and appeal to the same market participants that would also consider purchasing the subject property. However, your local real estate agent has the resources and expertise to walk you through the process. 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.
Sometimes they may look back a year and make adjustments if there aren’t good comparable sales to evaluate. Appraisers usually focus on homes within 1 mile if possible, whereas a Realtor may have a narrower scope. Appraisers often focus on homes within 10% of the age and size of the property in question. Like Realtors, appraisers also take into account similar upgrades between the properties. The appraiser then submits a lengthy report providing an opinion of the home’s value. Realtors start by researching comparable home sales to assess the price for the new listing.
Sellers often try to motivate buyers in slower seasons with a lower sale price, so keep seasonality in mind as you price your home. There are a number of free online resources through which comparable home sales can be pulled. Sales Comps is just one toolset within FlipProperties™ it is the all-in-one solution to manage your growing business. Don’t settle for having to use multiple systems or having inaccurate data. FlipProperties™ will allow you to take charge of your Real Estate business. Short sales are typically in good condition, although they are still distressed sales.
Stay ahead of the competition by knowing when deals are closed in your area of interest, without spending time running searches. FlipProperties™ is a membership community using multiple platforms to allow our members access to a virtual “tool-chest” of information. Elizabeth Weintraub is a nationally recognized expert in real estate, titles, and escrow.
No comments:
Post a Comment