A ‘Comp’: AKA a comparable
Real estate lingo can be really annoying to get used to at first, especially since you don’t need to know or use it… until you do. So I hope this helps get one of the bigger ones out of the way. A “comp” is the shortened term for a comparable. A comparable property allows Realtors the ability to price a sell AS WELL as guide their buyers on a competitive offer on a property. Why is that? Let’s take a look!
SELLERS
When pricing your home it is important to look at homes in your neighborhood that are on the market as well as those that have recently sold. These are your competition as well as your “comps” for pricing correctly, which is the KEY to selling. Comparable properties are ones that are within the same constructed date range, that are around the same square footage, similar acreage, and the number of bedrooms and bathrooms are almost identical. All of this information gets weighed and discussed to help determine the offer price.
SELLER TIP: Always know you have the final say in what your home is listed at. Realtors are there to guide.
BUYERS
Let’s switch over to buyers. When you purchase a home in Texas you can figure out how to write your most competitive offers using comps. Your Realtor, your buyers agent on this side, uses all of the previous listed data to make sure the home matches what the neighborhood is valued at. The appraiser will also use these to determine the value given to the bank on your loan, so knowing and offering using the data at hand is what your Realtor helps guide you too!
Knowing how to navigate and skillfully construct or review a contract is where an agent stands out from others, and frankly earns their commission. So as always, if you are looking for your own trusted agent in Texas , I would love to meet for coffee (or your choice of beverage) to discuss how I can be that for you!
