Home Valuation – How to Find the Best Comps –

Whether you are looking to buy or sell, knowing what to look for and how to qualify a comparable for home valuation will ensure that you can be confident in your negotiations.

Location: The closer to your house the better, but don’t just use any comparable sale within a mile radius because there may be a better comp 2 or 3 miles away.  The best comparable sale is a house in your neighborhood, on a similar lot on the same type of street as your house, and in your school district. Sometimes that is not as easy as it sounds.

Date of sale: In today’s world, most lenders will require the closing date of a comp to be within the last 90 days. That means, the house down the street that sold a few years ago at the peak of the market is NOT usable.

Style of Home: Try to find comparable sales that are like your home in style, material, square footage, number of bedrooms and baths, finishes, and lot size.  If you have an ‘original 70’s ranch, then you will only be kidding yourself if you use the 2 year old home in the new subdivision down the street – the reverse is also true if you are looking to buy, don’t comp a newer home with one from the previous generation.

Features and updates: Is the kitchen or the baths updated?  Is there crown molding, a deck, or a pool? Do the neighborhoods have the same amenities? If there is a POA/HOA, how do the fees and amenities compare?

Concessions and Incentives: You will probably need the assistance of your Realtor to obtain this information.  Did sellers of the comparable provided the buyers with an allowance toward closing costs or upgrades? Sometimes personal property is offered as a buyer incentive.  You have to reduce the value of any comparable sale to compensate for seller concessions and buyer incentives.


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If you have questions regarding the buying or selling process, Contact Andy ( Andy@myhshome.com ) or Cindy ( Cindy@myhshome.com ) Meyers today.