Once you decide to sell it is imperative that you have a Realtor who understands the importance of using the right comparable sales to find the perfect list price for your home.

Knowing how much homes similar to yours, referred to by Realtors as comps, sold (recorded at) for gives us the best idea of the current estimated value of your home. Finding homes that are closely match yours is the tricky part.

What makes a good comparable sale?

The best comparable sales to use would be same model as your house in the same neighborhood that closed escrow within the last 6 months. It is highly important to pick the most recent solds that are comparable to your home.  What does this mean?  Well, if within the last six months there were 5 homes that were comparable and 3 homes sold within the last 2 months then those sold prices will be more weighted then the 2 homes that sold 4 or 5 months ago. 

Often times in older neighborhoods it is difficult to find homes that are perfect matches, here are other factors that count:

Location: The closer to your house the better, but don’t just use any comparable sale within a mile radius. A good comparable sale is a house in your neighborhood, your subdivision, on the same type of street as your house, and in your school district.

Home type: Try to find comparable sales that are like your home in style, construction material, square footage, number of bedrooms and baths, basement (having one and whether it’s finished), finishes, and yard size.

Amenities and upgrades: Is the kitchen new? Does the comparable sale house have full A/C? Is there crown molding, a deck, or a pool? Does your community have the same amenities (pool, workout room, walking trails, etc.) and homeowners’ association fees?

Date of sale: You may want to use a comparable sale from two years ago when the market was high, but that won’t fly. Most buyers use government-guaranteed mortgages, and those lending programs say comparable sales can be no older than 90 days.

Sales sweeteners: Did the comparable-sale sellers give the buyers down payment assistance, closing costs, or a free television? You have to reduce the value of any comparable sale to account for any deal sweeteners.

Agents can help adjust price based on insider insights.  Even if you live in a subdivision, your home will always be different from your neighbors'. Evaluating those differences—like the fact that your home has one more bedroom than the comparables—is one of the ways real estate agents add value. 

An active agent has been inside a lot of homes in your neighborhood and knows all sorts of details about comparable sales. She has read the comments the selling agent put into the MLS, seen the ugly wallpaper, and heard what other REALTORS®, lenders, closing agents, and appraisers said about the comparable sale.

Foreclosures and Short Sales are used as comparables when Appraisers go out so these sold prices need to be taken into account when deciding on the list price.  Not to mention that Buyers are not going to buy a home that is not a short sale or foreclosed on property at more than what they sold for.  Buyers are extremely savvy these days and are always looking for perceived value.  They will not over spend and banks won’t let them. 

If you are contemplating selling your home we highly recommend contacting us to arrange a viewing of your home so we have an overall idea of the condition of your home in relation to comps currently listed in your neighborhood.  At this time you we will share with you the process of selling, any ideas that would make your home more marketable, and provide you with a range of where your home should sell at based on the current market sales. 

We look forward to hearing from you.