The most important aspect of listing your home for sale is the asking price.
Unlike many other items we purchase, home prices are based on what a
willing and able buyer would pay for the property. Sounds complicated,
right? This is why real estate agents bring comps ( short for comparable
properties) information with them to the discussion. Yet are you using the
right comps to successfully sell your home?
The idea is to gather information about comparable properties that have
sold recently that are similar to your own. The goal is to compare apples to
apples. In other words, the properties should be as close to the subject’s
home as possible. This includes things like:
· Location – how far is the property from yours?
· Size – square footage is an important aspect of value.
· Number of bedrooms/bathrooms – even if the square footage is
close, the number of bedrooms and bathrooms can have a large effect on
· Style, view, street, yard – even the exact same floorplan can have
vastly different values based on the street it’s on or the view. The size of the yard
and privacy are also critical components of value.
· Amenities – private or community pools and other amenities can
affect the value as well.
Your agent will bring recent sales for homes that compare to yours. As you
look through these listings, you can add or subtract values based on the
differences. This is the same process an appraiser will use to approve the
loan. While this is more of an art than a science, the right comps can help
you properly price your home for a smooth sale.