Making the Most of Comparable Sales
Learn how to use comparable sales for any investment needComparable sales are one of the best tools to use throughout the buying and selling process. This gives the property buyer or seller an inside look at the value of the property. It will still be necessary to obtain an official appraisal at the sale of the property, but having this information beforehand ensures pricing is accurate from the start.
Utilizing comparable real estate sales properly is important. The size, structure, features and location of each piece of real estate must be taken into consideration. Even then, the actual values can be highly opinionated. Making the most of comparable sales often means getting help. Keep the following in mind when doing so:
1. Choose the best sources for comparable sales data including the most up-to-date and thorough information available.
2. Seek out trusted, proved professionals to aid in the search for comparable home sales information.
3. Interpret the comparable property sales information without any influence from what the goal property value is.
Use a real estate agent for comparable properties resources
Perform a comparative sales analysis to determine list priceProperty comparables are used to determine the best list price for a property entering the market. Use this information from trusted resources to gauge the real estate market trends and to determine the most fitting pricing point for the property to list at.
Find comp sales to determine if refinancing is possibleAnother way to use comparable sales is to use the information gathered to determine the value of a property currently owned. This can help the real estate owner to know if the property is worth enough to refinance the mortgage loan. With property values falling, or rising, it is essential to know the property's worth prior to investing in an appraisal service.
- Many tools use comparable sales in the public record to estimate the value of a piece of property. Local public records are a good source, but keep in mind that these deed filings may be six-to-eight weeks behind the current market. Therefore, it is often best to use them as a secondary tool and count on professionals for more accurate and current information.
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