First, what is a “comp?”
Comparable homes (“comps”) are homes that are in the same area as yours, and have a similar home size, lot size, condition, and, if possible, style of home.
- Consider the area: It’s important to analyze homes in just your neighborhood. Prices in different areas will be driven by a host of different factors – location, schools, regulations, etc. You want to compare apples to apples when checking out your competitors.
- Other considerations:
- Functionality of the floor plan
- Has the home been recently remodeled?
- Curb appeal (first impressions count!)
- Does the property have a pool or view?
- Is it on a quiet or beautiful, tree-lined street, or on a noisy, busy street?
All of these factors impact the value of the home, and it’s important to take a sober look at your home’s features with someone who help you by being honest with you.
It may be difficult to evaluate your home completely if you’re attached to it. This is where outside counsel comes in handy. Seasoned Realtors see thousands of homes every year, and, if they’re worth their weight, have a very good idea of what’s currently desirable and selling, and the value of a home’s features relative to other properties.
Remember, it is *crucial* you only consider comparable homes in your analysis. You want to compare apples to apples.
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