Comparable Sales Basics

Invest the time in comparable sales so each transaction is valuable
By Sandy Baker Comparable sales are used to estimate pricing on real estate for many reasons. The value of properties recently sold and those properties of similar structure and size are used to estimate the value of the current piece of real estate. This gives the property owner and the buyer of it an idea of its real worth. These comparable sales basics can be enhanced in many ways.

By using comparable real estate sales, real estate agents and other professionals can produce a very good picture of the value of the property. This is part of the formula used by appraisers to determine the value of real estate as well. When using this information, keep the following in mind:

1. Determine comparable home sales within the right region, since the area of comparison should be close.

2. Invest in comparable sales data that is as up to date as possible.

3. Learn about comparable properties through a variety of sources.

Use comparable property sales information from public records

Public records are a free real estate comparables tool that can be accessed by the general public. Use the deeds filed with municipalities or the local county recorder's office. The only downside to using this information is that it can be six-to-eight-weeks behind the current market, making it less accurate for rapidly changing markets.
Try:  Locate comparable house sales ny searching local public records. Nationwide Environmental Title Research provides a comprehensive search tool for locating public records. It is a tool used in correlation with the many county and municipal recorders' offices. PublicRecordFinder is another source that provides public record searches for property sales and information.

Find comp sales from the Multiple Listing Service

Real estate comparable sales are available through the Multiple Listing Service, or MLS. Generally, this is a real estate agent's resource for locating properties for sale, but it can also be used by the public through a variety of websites. The key is to find the selling price posted on the MLS just after the property sale is complete. This information remains posted for several months or longer.
Try:  Seek property comparables through researching the MLS. The National Association of Realtors offers an excellent tool for locating properties on the MLS, including a newer home values search function for the country. Other services, such as Zillow, provide information about the value of properties based on the MLS tools. They do the research and compute pricing automatically.

Utilize pending sales for comparative sales analysis

The most accurate and most current information available for comparable home sale prices comes from pending home sales. These are properties that are just selling. This information is rarely available to the public, so hiring a real estate agent is necessary to use this information to price real estate.
Try:  Choose comparable sales in this form for the most accurate information. Hire a real estate agent to handle this information gathering. Finding a local, experienced realtor is often the best investment. For those purchasing property, there is usually no cost to hiring an agent as the seller of the property pays the commission. Use nationall companies such as Century 21 Real Estate. Another service, ePoweredProfessionals, provides a list of available agents by state.

• When using comparable sales in the public record, keep in mind that any changes to the property have likely not been updated. New additions, structural changes and even remodeling is not always recorded.