What is considered a comp?
A true comp is a home that is comparable in square footage, bedroom/bathroom count, lot size, style of home and the list goes on.
How many comps should you look at?
Really as many as you want but I typically look at 5 - 10 comps when analyzing a property. Sometimes you need to look at more comps to paint the true picture of what’s going on.
How far back in time should you look?
3 months is ideal but you can go back 6 months. If you go back any further we are looking at a different real estate market and have to make adjustments for time
How far should you look from the property you’re interested in?
The closer you are to the house you’re bidding on the better. I typically like to look within 1/2 mile to 1 mile. It’s OK to include a larger area to look within but always consider how it compares to the street and neighborhood of the house you’re bidding on is in.
Other key factors?
Average Days on Market
Median / Average Price Per Foot
Historical Graphs to determine future appreciation
% LP/SP (Typically what percentage of list price does the property end up selling at)
Active Comps - You need to see how other active listings are performing
Historical list history of subject property
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