A more accurate value assessment of value is often calculated by investors trying to establish the value of a given home through comparison to sales rates of comparable homes. Members of the real estate community refer to comparable sales as “comps”. This refers to the sale of other homes in areas resembling that of the area in which the home is located. Homes used as house comps are chosen because of their similarity of features to those of the home being appraised.

They indicate the value of the home on the current market by analyzing information and statistics on the house comps. These comp sales help buyers decide how much to offer on a particular home. These same house comps are used by sellers to establish what price they should set for the listing. Homes generally remain on the market with no movement when they are priced above comparable homes in the area because the sellers place a higher value on the home than comps in the market indicates. When a home is priced similarly to others in like neighborhoods they attract more buyers and investors and therefore are more likely to sell.

People other than buyers and sellers make use of house comps. Lenders need to be able to confirm the current market value of homes they are considering financing and do this by looking at house comps. They can more accurately determine reasonable loan amounts and rates of interest. Appraisers also make great use of house comps to gain needed information. Their appraisal reports include the information as to which houses in the comparable areas they used and what their purchase prices were.

An impressive amount of information is provided by comparable sales on a house or property. There are, of course, relative variables neighborhood to neighborhood but by and large anything a prospective realtor might need to know can be provided through the use of house comps. Comparable sales rates take into account the condition of a home as well as any particular features a home or property may possess, thus allowing an extremely accurate portrait of the current market value of a property based on the assessment of like properties.

There are a multitude of places to find house comps, particularly on the internet. There is an excess of beneficial data in addition to comps and most of these sites are at no cost to visit and explore. Title companies can also provide house comps.