What are Comps and how do they help determine house value?
Whether you find yourself buying or selling a home, neighborhood Real Estate Comps are a very important and useful tool. “Comps” refers to comparable sales, and they are used by agents and appraisers to determine the value of a house. The value of properties currently on the market along with properties that have sold in the past helps bring into focus the value of a house.When you use a licensed real estate agent like someone from Cami Jones & Co, she will have access to the Multiple Listing Service (MLS), which is a database of all the properties in a given area that have been listed “for sale,” are in process of being sold (pending,) have a contingent offer or have previously sold. This is one of the many benefits gained when using a Realtor® to facilitate your real estate transaction.When reviewing Comps, we will take into account homes that have a similar size, condition, and location. This way, we are comparing “apples to apples.” The reasoning here is that your home is worth whatever others would be willing to pay for it — what the market bears — and the best way to determine this is to see what others have paid for similar homes.Keep in mind that every house is different, so you add or subtract from the fair market value to account for features and finishes that make the home more or less desirable to potential buyers even if size, condition, and location are pretty much equal.If you’re looking to sell and want to get a handle on what your home is worth, please contact us! We are Kansas City’s real estate experts and would love to help!