An accurate and efficient means of determining the value of a home when real estate is being appraised is to compare it to similar homes sold in the same neighborhood. The term “comparable sales” is used to describe this method. “Comps” is the shortened version of this term and the problem that arises is that houses are unique and therefore difficult to actually compare. If you are thinking of selling or refinancing your home and want to do your own home comps the information in this article will be most helpful to you.

Some of the primary considerations determining comparable sales are total number of rooms, number of bathrooms and bedrooms, the square footage of both the house and the lot and the overall state of the house and grounds.

Items that can have a pronounced effect on the home comps to another are decks, multiple stairway access to a level, number of chimneys, number and size of windows, over-sized bathtubs and walk-in closets.

In order for the home comps study to have any veracity is must take into account that even within a neighborhood there can be variations in view, proximity to adjacent homes, closeness to sidewalks and distance to nearby stores.

Differences in the shape and size of lots and land contours can even result in value deviations between two houses sitting right next to one another. The difference in appeal or attractiveness of a level, grass-covered backyard over a sandy area or a rock ledge as an example.

Careful consideration must be given to the comprehensive age of a home in determining home comps and what is not since there are matters of additions, enhancements or upgrades such as siding/exterior paint, roof, electrical and plumbing which may need to be replaced.

The concept of supply and demand must also be thought through when executing home comps. One possible consideration is whether the seller will need to reduce the price if other homes in the neighborhood are not selling. Along the same lines, if too many homes are available in the neighborhood the ability to sell will be hampered.

Taking the entire neighborhood into account, look at the high and low values. A house in one neighborhood may be valued very differently from an identical one in a neighborhood where it is more in keeping with the size of other houses in the neighborhood. The opposite effect will occur with a small house being valued more highly if it is in an more upscale neighborhood.

Regardless of the reason for the need to determine the value of a house there is no process as effective as the comparable sales procedure. You are now armed with knowledge about home comps but if you want to be certain that you do not pay too high a price for your new home or accept too little for selling your present home it is essential that you hire a trained appraiser to be assured of accurate home comps.