Here are some of the top reasons home sales fall through.
Comparables, or comps, is a key real estate term. Bankrate explains it.
What are comparables?
Comparables, sometimes referred to as “comps,” are properties used for comparison in the real estate appraisal process. When a house is on the market, appraisers and real estate agents look for similar properties nearby that have sold recently to get an idea of what the for-sale house is worth.
When looking at comps, realty professionals find out how much other homes in the area, of similar size and with similar amenities, sold for in order to gain a better sense of how the home on the market should be priced. In planned communities, it is easy to find comps. But it can be a challenge to find comps for one-of-a-kind custom builds and homes in the country.
There are sometimes disagreements about whether a property is comparable to another one, but obtaining comps is still the best tool for determining the value of a home. Buyers want to know that a home has been fairly priced and that they are being asked to pay the going rate based on the home’s location, size, age and condition.
Want help buying a home? Learn these seven tips for picking a great real estate agent.
Example of comparables or comps
Jack and Jenny want to sell their home but don’t know how much to ask for it. Their real estate agent provides a comparative market analysis, which lets the couple see how much similar homes in their community are selling for. Besides sale prices, the comparables analysis details how many bedrooms and baths the houses have, the age and condition of the homes, the lot sizes, and whether their architectural style is similar to Jack and Jenny’s house. With all that information on the comparables, the realty agent can give the couple a very good idea of how to price their property.
More From Bankrate
3 min read Jun 24, 2022
Here are some of the best strategies to get what you want.3 min read Jun 24, 2022
The asking price might simply serve as a starting point.4 min read Jun 24, 2022
Is a rent-back agreement a good idea?5 min read Jun 24, 2022
A more firm signal: the sudden surge in mortgage rates.4 min read Jun 24, 2022
To ensure the transaction goes off without a hitch, be clear about your goals.3 min read Jun 24, 2022
There are some considerations to keep in mind — and ones you potentially might not want to budge on.3 min read Jun 24, 2022
There are many considerations to give thought to before packing up and moving.3 min read Jun 24, 2022
Why is the average so much higher?2 min read Jun 24, 2022