Tips for Using Comparable Homes to Determine the Right Price to List Your Home For

Deciding how much to list your home for is one of the hardest steps in selling your home. You may get the most accurate estimate of your home’s current estimated value by looking at comparable sales, sometimes known as “comps” in real estate jargon. Finding sales that closely resemble yours is the key.

This can be a difficult process but the good news is that you are not in this alone. Contact Berkshire Hathaway HomeServices at (310) 373-0021 now if you are in need of more tips for selling your home.

What characteristics characterize a successful comparative sale?

Your best comparable sale recently closed escrow and is the same model as your home in the same subdivision. If you can’t locate that, these other considerations also matter. Location is key. Use comparable sales that are as close to your home as possible, but don’t just use any sale within a mile of it. A home in your area, subdivision, on the same kind of street as your home, and in the same school district makes an excellent comparative sale.

Look for comparable sales that are similar to yours in terms of design, building material, square footage, number of bedrooms and bathrooms, basement (if it has one and whether it is finished), finishes, and yard size.

Upgrades and amenities are important too. Is the kitchen new? Does the similar home have central air conditioning? Is there a terrace, a pool, or crown molding? Are the amenities (pool, fitness center, walking trails, etc.) and homeowners association costs the same in your community?

You might wish to use a comparable sale from when the market was strong two years ago, but it won’t work. The majority of buyers utilize government-backed mortgages, and according to these loan programs, comparable transactions must be older than 90 days.

Did the sellers of comparable sales provide the purchasers assistance with closing fees, a free television, or down payment? Any deal sweeteners must be taken into consideration when lowering the value of any similar sale.

Agents might assist in price adjustment based on intimate knowledge

Even in a community, your house will never be exactly like that of your neighbors. One method real estate brokers use to assess value is by analyzing these variations, such as the fact that your property has one more bedroom than the comparable properties or a basement office.

An active realtor is familiar with all the specifics of comparable sales and has visited many homes in your neighborhood. They are aware of the unsightly wallpaper, the remarks the selling agent made in the MLS, and the opinions of other lenders, closing agents, and appraisers on the similar sale. Contact Berkshire Hathaway HomeServices at (310) 373-0021 and let us use our expertise to find the right price to list your home.