Home Buyer 101: What are Real Estate Comps?

    New Orleans home buying

    New Orleans Home Buying

    As a potential home buyer, you’ve probably heard your agent say “let me pull the comps for you”. You nod your head and play along, but inside you might be thinking….

    What are The Comps?

    Fortunately, it doesn’t take a math degree to understand comps.

    Comps = comparable properties that have recently sold

    What makes a property a comp?

    Location, condition, size and amenities. Your agent is searching for the selling price of the most comparable properties that have sold in the last 6 months in order to help you fashion the strongest offer on a house you’d like to buy. They are also reviewing sales to determine if the seller provided any closing cost assistance or a home warranty.

    Essentially, it’s boiling similar property sales down to get as close as possible to what we think the appraised value will be.

    Now, it’s up to you to decide if you want to low-ball or go in with a very strong offer.

     

    Trackback from your site.

    Leave a Reply