It’s the million-dollar question: What is my home worth? To figure that out, one of the main tools you and your realtor will use is nearby comparable sales that have occurred in the past year. But since no other home is exactly like yours, how do you find an apples-to-apples comparison?
Ask yourself this question: If my home wasn’t for sale, what other properties would my would-be buyer be considering? The answer to this question can help guide you to good comparable sales (A.K.A., “comps”). And finding accurate comps is critical since the home appraiser for your buyer’s mortgage lender will do the same thing. If your home doesn’t appraise for the agreed upon sale price, it’s likely your buyer will either hit the bricks or try to negotiate a lower sale price.
Ideally, you want to find homes in your specific neighborhood that recently sold—within the last 3 to 6 months—but if there aren’t any, start looking at a radius of one mile of your home, and go outward from there if necessary. Most professionals will not use a comp that sold more than a year ago since markets can substantially fluctuate during that time.
Try to avoid crossing major streets or into different school districts, since this can have a big impact on values. Also, be sure you’re looking at houses of a similar age to yours; older and newer homes may have dramatically different price points.
Finally, you want to find homes that are of a similar size and condition, with similar finishes and upgrades as yours in order to figure out an accurate price per square foot for your local real estate market.
Never fear: If you’re feeling overwhelmed at the prospect of researching comps, thankfully, an experienced realtor will be able to do much of this legwork for you! Other than location and date of sale, what do you think is the most important criteria to pick a good comparable property?
Ask yourself this question: If my home wasn’t for sale, what other properties would my would-be buyer be considering? The answer to this question can help guide you to good comparable sales (A.K.A., “comps”). And finding accurate comps is critical since the home appraiser for your buyer’s mortgage lender will do the same thing. If your home doesn’t appraise for the agreed upon sale price, it’s likely your buyer will either hit the bricks or try to negotiate a lower sale price.
Ideally, you want to find homes in your specific neighborhood that recently sold—within the last 3 to 6 months—but if there aren’t any, start looking at a radius of one mile of your home, and go outward from there if necessary. Most professionals will not use a comp that sold more than a year ago since markets can substantially fluctuate during that time.
Try to avoid crossing major streets or into different school districts, since this can have a big impact on values. Also, be sure you’re looking at houses of a similar age to yours; older and newer homes may have dramatically different price points.
Finally, you want to find homes that are of a similar size and condition, with similar finishes and upgrades as yours in order to figure out an accurate price per square foot for your local real estate market.
Never fear: If you’re feeling overwhelmed at the prospect of researching comps, thankfully, an experienced realtor will be able to do much of this legwork for you! Other than location and date of sale, what do you think is the most important criteria to pick a good comparable property?
Holly Hurd ~ Berkshire Hathaway HomeServices HWWB, REALTORS......your source for all your real estate. We are one of the Largest brokerage firms in Michigan, we have proven we can stand the test of time in this ever changing market place a proven leader for you and all your real estate needs. In today's competitive real estate market, timing is everything. Many good homes are sold before they are ever advertised. Beat other homebuyers to the hottest new homes for sale in the Wayne/Oakland co. area with my New Listings Notification. If you own real estate that you're thinking of selling, I would be happy to provide you with a FREE Home Evaluation. Whether you are buying or selling a home, hire someone like me, who wants to earn your business. I invite you to contact me as I'd be happy to assist you with this important transaction. In addition, if you have any general questions about buying or selling real estate in Michigan, please contact me as I'm more than willing to help.YOU CAN REACH ME DIRECT BY PHONE ANYTIME AT 734 718-5736 #YourHomeNorthvilleMichigan Real Estate Homes for sale in Northville Michigan Northville, Mi. 48167 #realtor #realestate #realestatemarket#realestateforsalemi #hometown #hollyhurd #home#homesforsale #historicnorthville #buy #buyingahome#buildingahome #buyrealestate #condo #northvillemi#sellyourhome #sellingyourhome #smalltown #shop #bhhs#berkshirehathaway #moveinmichigan #greattimetobuy#puremichigan #SOLD
