Five things that factor into comps
You may think that sale price is the only factor when you're
looking at comps and trying to set a price for your listing. But it's
actually a bit more complicated. Here are five things that affect comps
that you might not be aware of.
- New construction nearby: Because of low prices for
lots and varying prices in home building materials, new homes can
actually be cheaper and cost less per square foot than existing homes.
If there's a lot of new construction nearby, that can affect the price
for your own listing.
- Renovations: Recently renovated homes typically
sell for more than homes that haven't been updated in a while. If you've
recently upgraded your home-especially sought-after upgrades like the
kitchen or master bath-your home should be priced appropriately.
- Developable lots: Not all lots are created equal.
Even if the square acreage is the same, a lot that's easily developable
will get a better price than a hilly or rocky lot that needs a lot of
- Listing price vs. sale price: Whether sellers
actually get their asking price depends greatly on the market. When
you're pricing your home, it's important to look at sales prices, not
just listing prices. The listing price doesn't always accurately reflect
what a home will sell for.
- Location: Nearby amenities, safety, schools, and
noise levels can vary greatly within a neighborhood. Homes in more
desirable parts of the neighborhood will sell for a higher price, all
else being equal.