Comparables are used when trying to assess the current value of a home. To find out what your home is worth, it is compared with recently sold establishments in the area that are similar to your home in size, location, and condition. Here are some suggestions on comparing comps in the area.
Size of the Property:
When comparing comps, start by searching for homes that are similar in size to yours. Searching by square footage is the most common method used with comparables. Using the “apples to apples” approach will steer you in the right direction when determining the value of your home. If your home has three bedrooms and two bathrooms, you will want to look up homes with the exact same features.
Location of the Property:
Location is everything, and can make a huge difference on the value of property. Comps should be pulled from the same area as your home, but there are still many location factors that may alter the value of your home compared to a similar home down the street. If there is a home comparable to yours, but it has a better view, or it is closer to nearby shops and restaurants, this wouldn’t be a good comp because it wouldn’t be helpful in determining the value of your home.
Condition and Age:
If you find a home similar to yours based on the amount of rooms and square footage, check the condition of the house before comparing comps. Note the condition of the roof, driveway, paint, fences, and other outside areas. Age is also a factor with comps. Whether your house is old or new can factor into price. It is best to stay within a five-year range when comparing comps.
The more you have to offer, the more your home is worth. While comparing comps, additional add-ons and perks can make a huge difference in price. Pools, spas, walk-in closets and kitchen islands, just to name a few, can jack up the price of any home. Refer back to the “apples to apples” approach when analyzing comps to make sure you are including all amenities when determining the value of a home.
Whether you are buying or selling a home, it is important to pick the best and most relevant comparables. By taking the proper steps, you can ensure you aren’t paying too much for a home when buying, and that you are getting paid the full value of your home when selling. For further tips and suggestions, please call Center Island Contracting at 631-465-9765.