Pricing a home can feel like a guessing game, but real estate comps—comparable home sales in your area—take the mystery out of it. Whether you’re selling and want to set a competitive price or buying and hoping to make a strong offer, knowing what similar homes are going for is key. So before you sell your home in San Diego or close on that house in Miami, read this Redfin article about how to find real estate comps for your area.
What are real estate comps?
Real estate comps, also referred to as “closed comparable sales,” are recently sold homes in a specific area that share similar characteristics with the home you’re selling or considering buying.
Keep in mind that home values vary by location. For example, a home in Houston, TX will list for a different price than an exact replica of the same home listed in Sacramento, CA. Even if the homes are the same, local market conditions play a major role in determining their value.
Factors that influencer real estate comps
To be considered a comparable property, a property should ideally match your house in:
Location
Location matters. In some areas, a property’s value can change from neighborhood to neighborhood, from block to block, or even within 100 yards. Start by looking for comps within a 1-mile radius, and move out to 5 miles if necessary. Expert knowledge can help you understand nuances in a neighborhood, so take your time or ask an agent to help you.
Neighborhood
Real estate comps should have the same neighborhood features, such as distance to schools, stores, hospitals, waterfronts, parks, and views. Also, keep in mind access to public transportation and walkability.
Year built
Consider houses built within a 5-year range of your home being built. Many assume that an older home is in need of more work and updates. While this isn’t always the case, a newer home will initially have a higher fair market value.
Size of the home
Square footage plays a significant role in comparing…