Comparables

Comparables are essentially similar properties in the immediate area. Real estate agents will obtain a list of comparables for several reasons. The first reason is to assist buyers during the negotiation process. By viewing what similar homes have sold for, buyers can submit an educated and reasonable offer to the seller. Secondly, viewing comparables can be helpful when determining the value of a property. Of course, a property appraisal is the primary mode of determining the value of a property, but comparables are easily obtainable and provide valuable insight as to the value of the property. When choosing comparables, it is important to consider properties that distinctly resemble the home being considered. For example, comparables should have similar square footage and should have been built within the same time frame.