Comparables – What are they and why you should care!

This has been a week of lots of comparing of homes for sale for our team. We have been dealing them for both buyers and sellers. You might not think that Comparable Sales (comps) are all that important, but you really need to pay attention to them. Because if you don’t, you may be caught off guard and see a deal blow up in front of your eyes. The comparable sales we look at help us assist home sellers determine their list price and home buyers decide on their offer price on a home they want to purchase.

Read Also: Why You May Need a Price Reduction on your WNY home

What is a Comparable Sale?

Why would this be so important? Well let’s start with that whole mortgage crisis mess we have been dealing with the past few years. Banks are now looking at the appraisals very closely and they are more strict in the criteria. Which means trying to compare an apple and an orange isn’t going to fly. It reminds me of the Sesame Street song “One of these things” song that I used to watch when I was a child.

Read Also: What is a Real Estate Appraisal?

Time and again we are faced with a home that another agent has listed that is over priced and when we run the comps we cannot come up with that number using some basic rules to compare homes. Gone are the days where competition for a home was fierce and people were purchasing all cash.

Home Sellers that understand this are able to sell their home faster and move on with their lives. Home Buyers already understand this and are writing their offers to reflect their knowledge of the market. So when a home seller comes on the market in an area that is saturated with lots of listings with a realistic asking price; they find themselves with multiple offers within the first days of listing it for sale.

Read Also: Is your Buffalo Realtor® telling you what you need to hear or what you want to hear?

When a Realtor(c) puts together a list of comparable properties for you they follow some general rules:

Property Type

  • Should be the same style home
  • Similar square footage
  • Age of home
  • #bedrooms, baths and similar features
  • Similar lot size
  • not comparing single-family to a condo or multi-family home
  • upgrades and enhancements comparable

Location

  • Be within a mile of your home
  • within the same school district
  • the closer to your home the better

Recent Sales

  • Sales should be in the last 90 days
  • Is it a distressed sale (Short Sale/Foreclosure)
  • Was the house sold furnished or unfurnished
  • Incentives? Seller’s Concessions involved?

Let’s face it, there are many factors that go into the decision about the comparable homes for the home you are working on establishing value on. If there is not recent sales the area is expanded then there is the general rules of value that you can adjust. But when we are faced with this; we usually will call in an Appraiser as they will be more qualified to determine the value of the home.

Thinking of selling your Erie County home? Interested in finding out the current market value of your single family home, condo or investment property? Then call www.BestBuffaloHomes.com at (716) 650-0051 to discuss what is happening in today’s Western New York Real Estate Market. We would be happy to give you a personalized Comparative Market Analysis for your home or assist you to purchase a home. View additional WNY Market Area Statistics here.

What about one of these homes?

All Statistics are gathered from the Buffalo Niagara Association of REALTORS®.
Properties found on this Web site may be listed with a brokerage other than the owner of this site and are displayed here via the Internet Data Exchange (IDX) system of this broker’s MLS. All information deemed reliable but not guaranteed and should be independently verified. All properties are subject to prior sale, change or withdrawal. Neither listing nor displaying broker shall be responsible for any typographical errors, misinformation, misprints, and shall be held totally harmless. © 2014 Western New York Real Estate Information Services (WNYREIS), LLC. All rights reserved.
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About Colleen Kulikowski, Associate Real Estate Broker (716) 650-0051

Colleen Kulikowski is an Associate Real Estate Broker with the Griffin Team @ Keller Williams Realty Buffalo Northtowns specializing in Western New York residential homes who doesn’t follow trends; she blazes new trails and is able to recognize industry trends and implement them to her client’s best interest. Colleen has created a unique following with one of the top local internet positions in the country generating thousands of leads for her team. Real Estate is a second career for Kulikowski who’s first career was in Information Technology and Data Warehousing working for such companies as Radio City Music Hall, Nabisco Foods and as a consultant in the Financial and Insurance industries. A strong background in technology and management provides her with keen analytical and sharp negotiating skills.

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