Definition of Comps. Are you afraid that your house might not go at the price that you have in your mind? This is one of the most common concerns of homebuyers. If you are lucky, your house will be treated to multiple offers. The worst-case scenario ― your house will sit on the market for a few months and will be subjected to low ball offers. But that’s not going to happen! We are about to share a simple and effective tip to help you set the right price.
The 4 essentials tools that help you determine the sale price of your house are online valuation, working with an Ocoee realtor, getting a professional appraisal, and finally, looking at the comps. Each tool holds its importance but today, we will talk about comps.
Definition of Comps
In real estate, the word “comp” is a short form of the expression “comparable sale.” A comp is a property that was sold recently and within a short distance to your house. Generally, it has the same characteristics as your home, which gives you an idea of how low or high of an offer you can expect.
How Comps Matter
The word that you need to focus on in the definition is recently. The purpose of looking at comps is to know what price range is going around in the neighborhood. Keep in mind that the house should be in the close distance must have been sold only a few months ago.
A comp necessarily doesn’t have to be a copy of your house. It can be of different lot sizes and square footage. However, if the house has luxury features such as a swimming pool in the backyard or a Jacuzzi in the bathroom then the price will vary.
Understanding the Importance of Comps
A comp helps you come up with a fair offer. For example, you are selling your house in an area with plenty of facilities such as a park, a local community center, and a great school. You just found out that two of the homes in the area were sold for $210,000 and $215,000. So, you can set the price of your house under $225,000. Buyers will either place a similar offer or slightly less. Expect the price to drop further during negotiations. The price might fall into the initial range.
Comps also factor into financing. Lenders will ask for an appraisal to protect themselves and make sure that they aren’t giving you a loan bigger than the value of the house. They also use comps to make a final decision.
The reason why looking at the comps is so important is because many sellers have unrealistic expectations. Making a rational assessment becomes difficult because you are emotionally attached to the house. If your house receives a low ball offer, it has got to do with the area and the house’s condition.
You can found comps through the MLS or ask your Windermere Florida realtor for them. To make sure that you receive the right offer for your Orlando real estate, hire a professional realtor. To get in touch with one, visit the website Megan Dowdy Realty or call on 407-509-9279.