What Are Comparable Real Estate Sales?
Comparable real estate sales are the sale prices of similar homes that have been sold in your area. They are neither active listings nor pending sales. You can compare both of them, but those values do not carry the same weight-age as a property that has been already sold.
When you approach an expert in Seaboard Properties to sell out your house, part of their assignment is to convey what your home is likely sell for. They tap into comparable sales also referred to as ‘comps’ to figure out a reasonable value for your real estate property.
Comparable sales are used as an estimation to justify why a purchaser is not willing to pay more than what the last person paid for the same property. Here are 6 key elements of a comparable real estate sale:
1. Sale time-frame
Earlier appraisers used to track public records of the last six months to compile comparable sales estimations. However, that time frame has been significantly tightened since sub-prime mortgage meltdown of seaboard properties in 2007. Thus, appraisers now use comparable sales of the past three months.
2. Close proximity
A researcher would ideally consider sales statistics within a specific radius, generally within one-fourth to half a mile of the subject estate property. As the rule of thumb ‘location, location, location’, the closer the better. A real estate near a busy street would be worth less than a property facing a lake.
3. Similar age and construction
You must have heard people saying, ‘homes are not being built as they used to.’ However, this does not imply that older houses are better than present homes. Instead the value difference is because of the appeal and characteristics of the property.
4. Similar square footage
Assessing the price of a 2000 square foot house by doubling the worth of a 1000 square-foot-home is insane. This is because a smaller house’ per-square-foot cost is higher than that of a larger home.
5. Similar lot size
You might find many different lot sizes in some newer home tracts. For instance, a real estate really does not have a yard with a zero-lot line. This does not often appeal to families with children as the side or back yard might be too small to have any grass or vegetation.
6. Similar condition
It can be very hard for you find a comparable sales condition when working without a neighborhood expert who has deep knowledge of the condition of most Seaboard Properties’ in a specific area. A stripped foreclosure real estate, missing its copper plumbing and appliances, owned by a bank has less value than a readily available house with new carpeting, paint and appliances.