If you’re selling a home in Lakewood or Long Beach, you’ve probably heard your real estate agent – or someone else’s agent – talk about comps.
But what are comps in real estate, and how do they affect your transaction?
What Are Comps in Real Estate?
The term comps refers to comparable properties. Your real estate agent will look at homes similar to yours to figure out how much a buyer is likely to want to pay for it. The homes your agent will look at will be:
· Homes currently on the market
· Homes that were on the market but never sold, so the owners took them off the market
· Homes that recently sold
Your agent will look at the most recent data, which means she’s only checking the last few months. The real estate market (especially in Lakewood and Long Beach) changes quickly, so what buyers were paying last season isn’t necessarily what they’re paying right now.
What Realtors® Look at As Comps
Generally speaking, your real estate agent will look at several factors to determine whether a home is similar to yours, including:
· Number of bedrooms and bathrooms
· Recent sales prices
· Style and details
Your agent isn’t going to compare your home in Long Beach to a home in Lakewood – it just doesn’t make sense because they’re two different markets. Likewise, even within the same city, prices can vary greatly. She’ll look at your home’s location and find homes within a short radius to compare it to.
Your home’s square footage has a lot to do with how much it’s worth, so your agent will look at similarly sized homes to help her arrive at a price.
Number of Bedrooms and Bathrooms
Your agent won’t compare your three-bedroom, two-bathroom home to a six-bedroom home with seven bathrooms. Like size, the number of bedrooms and bathrooms matters a lot when it comes to home pricing. She’ll only compare your home to those with a similar number of beds and baths.
Recent Sales Prices
When your agent is looking at houses that have sold recently, she’ll see how much they sold for – it’s a good indicator of how much yours will probably sell for, too.
Style and Other Details
If you’re selling a condo, there’s a good chance that it’ll sell in the same price range as every other condo in the building. However, if one has different views – let’s say one that sold last month has views of a factory in an industrial area and yours has views of the sparkling swimming pool – that has a lot to do with its value. Your agent will adjust her suggested sales price based on your home’s style, its views and other details that make it different from similar homes.
Are You Selling a Home in Lakewood or Long Beach?
If you’re selling a home in Lakewood or Long Beach, we can help. Call us at 562-882-1581 to find out how we’ll market your house to all the right buyers so you can sell it quickly and at the right price.
You can also explore our real estate listings here: