If you are planning on selling your home, one of the most important decisions you must make is coming up with the right asking price. Your real estate agent can help you do this, but you can also do some research on your own to find out what your house is worth. Looking for comps is one of the best options you have, and here are a few things to understand about comps.
What are comps?
A comp is another word for comparable, and in real estate this refers to a house that is like yours. For another house to qualify as a comp, it should be located in a similar area and have similar features. A comp must also be a house that someone recently sold, and this often includes house that have sold within the last few months. The purpose of finding comps is to have something to compare your house to right now.
How can you find comps of your home?
There are several ways to locate comps of your home, and asking your real estate agent for help is the easiest option. If you prefer to do this alone, though, you can, and you may want to start by Zillow.com. With this website, you can look up your own home to see what the value is, but you can also look up comps of your home. This is one of the easiest tools to use as you search for comps in your area.
How can you use the comps to put a value on your home?
Once you have at least three comps for your home, you will want to compare the homes to yours by looking at the following factors:
- The size of the home – You should divide the sale's price by the square footage of each home to find the average price per square foot. You can then use this rate to find out the value of your house compared to the others with the differences in sizes.
- The differences in features – If your house has things others do not have, you should add value to your home based on these features. If your home doesn't have features other homes have, subtract an appropriate value.
- Upgrades – Any major upgrades your home has can also increase its value, such as a new roof or new driveway.
These are some of the ways you can find the value of your home, and you can base your asking price on these things. If you have questions about this, contact an agent in your neighborhood.