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Pricing a home can feel like a guessing game, but real estate comps—comparable home sales in your area—take the mystery out of it. Whether you’re selling and want to set a competitive price or buying and hoping to make a strong offer, knowing what similar homes are going for is key. So before you sell your home in San Diego or close on that house in Miami, read this Redfin article about how to find real estate comps for your area.
What are real estate comps?
Real estate comps, also referred to as “closed comparable sales,” are recently sold homes in a specific area that share similar characteristics with the home you’re selling or considering buying.
Keep in mind that home values vary by location. For example, a home in Houston, TX will list for a different price than an exact replica of the same home listed in Sacramento, CA. Even if the homes are the same, local market conditions play a major role in determining their value.
Factors that influencer real estate comps
To be considered a comparable property, a property should ideally match your house in:
Location
Location matters. In some areas, a property’s value can change from neighborhood to neighborhood, from block to block, or even within 100 yards. Start by looking for comps within a 1-mile radius, and move out to 5 miles if necessary. Expert knowledge can help you understand nuances in a neighborhood, so take your time or ask an agent to help you.
Neighborhood
Real estate comps should have the same neighborhood features, such as distance to schools, stores, hospitals, waterfronts, parks, and views. Also, keep in mind access to public transportation and walkability.
Year built
Consider houses built within a 5-year range of your home being built. Many assume that an older home is in need of more work and updates. While this isn’t always the case, a newer home will initially have a higher fair market value.
Size of the home
Square footage plays a significant role in comparing home values. After all, if one home has 1,000 square feet and another 2,000 square feet, you are buying a larger home, and it should cost more to purchase. Square footage will raise or lower the value of the real estate comps you’re looking at. The best comps for you will be properties that are comparable to yours.
Layout
If the home has a strange layout or is partitioned into smaller, separate rooms, it can bring down the value and the sales price.
Price per square foot
Calculate the price per square foot by dividing the home’s sale price by its square footage. Price per square foot is always a good yardstick for neighborhood comparisons.
The number of beds and baths
A home’s value typically increases when there are more bedrooms and bathrooms. This translates into a higher sales price and considering higher comps.
Condition
If the house was in disrepair and needed a lot of work and investment to make it livable, the price the home last sold for may reflect a fixer-upper. However, on the surface, these deals would show up in comps the same as if the house was move-in ready. It’s important to dig further to see what any unusually high or low sales prices might reflect and help put these comps in perspective.
Upgrades and renovations
When a homeowner updates a bathroom or renovates a kitchen, their home value typically increases. Consider any renovations or upgrades you see in your real estate comps and how those compare to your home’s features. Does your home have a new kitchen or a deck that needs fixing? Either of these will undoubtedly have an impact on your home’s value.
Timeframe of when the comps sold
Focus on homes that have been sold within a 3- to 6-month period. In a hot market that favors the seller, you may want to focus on an even shorter timeframe.
5 ways to find real estate comps in your area
When searching for local comps, the first rule of thumb is to find three or more similar properties to ensure that any comparable property isn’t an outlier in price. For example, one home comp in your area may be lower than what you should list your home for sale because it was in poor condition and needed work. Another property may be priced higher because it was the best house on the block. Having at least three property comparables should give you an average price point to start with. Here are five easy ways to get those real estate comps.
1. Use a real estate website to find local comps
A real estate listing website like Redfin makes it easy to find recent home sales in your area.
How to find comps on Redfin:
- Search by address to see public sale info, including the last sold price.
- Scroll down on the listing page for nearby recently sold homes.
- Click “View More Recently Sold Homes” for a full map of recent sales.
Refining your search:
Use filters to narrow results by:
- Listing status: Set to “Sold” to remove active listings.
- Timeframe: Start with one month, then expand to 3-6 months if needed.
- Property details: Match beds, baths, square footage, lot size, year built, and HOA fees to your home.
- Special features: Consider amenities like waterfront views or recent upgrades.
The most recent data provides the best insight into fair market value, helping you set a competitive price whether you’re buying or selling. While this method doesn’t account for factors like home condition or renovations, it’s a strong starting point.
2. Use an online home valuation tool
Another valuable tool when searching for real estate comps is a home valuation tool to help you understand what your home is worth and provide a good starting point to determine the fair market value. Because Redfin uses complete MLS data on recently sold homes in your area, we offer a couple of different ways to access an online home valuation.*
- Instant home-value estimate and free home report: This a fast way and easy way to see what your home can sell for. Simply type in your address, and instantly see Redfin’s estimate for your home based on recent home sales in your area. It’ll even show you comps in your area just below the estimate.
- A professional estimate prepared by a Redfin Agent: This is a free, no-obligation property estimate prepared by a Redfin agent that knows the housing market in your area. Though you won’t get the estimate back instantaneously, you’ll receive an estimate within an hour that’s more comprehensive.
*These estimates are not intended as an appraisal and are not a substitute for the services of a professional, licensed appraiser.
3. Ask your real estate agent to procure MLS comps
One sure-fire way to get accurate real estate comps is to work with a local real estate agent. Local real estate agents are experts in their market and can give you sound advice on how to price your property, as well as help you understand data in MLS comps. Only licensed agents have access to the MLS, which is the most up-to-date and accurate tool available.
Real estate agents pull comps from the MLS in their daily work to provide clients with a reliable price range when listing a home for sale. For example, agents know if properties have likely increased in value, if the fair market value is accurate, or if a property’s price is out of line with other homes in the area.
4. Research public property records
Another valuable resource for homebuyers and sellers is your county’s public property records. Unfortunately, public property records can be a hit or miss when it comes to comps, as you’ll only be able to find the last recorded sales price, which may be from ten years ago. So if the area market has few or no recent transactions, you could be stuck with property comps that don’t reflect today’s market conditions. Public property records can be a good place to start, but you’ll need additional research to find accurate numbers.
Most counties allow you to search property records online at no cost – although you may need to pay for printed documentation. Visit your county or city website and search for “property records.” The house’s street address should allow you access to property tax information that will show the last sold price and the current taxes.
*This is not intended as an appraisal and is not a substitute for the services of a professional, licensed appraiser.
5. Check real estate auctions and foreclosure sales
Another way to find real estate comps is by looking at auction and foreclosure sales, which can provide additional pricing data, especially in areas with limited recent sales.
How to find auction and foreclosure comps:
- Search foreclosure listings on sites like Redfin.
- Check government resources like the HUD home store or county websites.
- Attend local real estate auctions to see what similar homes are selling for in distressed sales.
While foreclosure and auction sales may be priced lower due to the nature of the sale, they can still provide useful data points—especially if distressed properties are common in your area. Just be sure to compare condition, repair needs, and selling circumstances when using these as comps.
Who uses real estate comps?
Real estate comps are a useful tool for various people involved in real estate transactions. Here’s a breakdown of how different people benefit from using real estate comps:
Real estate agents and brokers
Agents and brokers use real estate comps every day to do their jobs. By analyzing recent sales and pending transactions, they can recommend fair market values and adjust pricing strategies based on current market conditions.
Home sellers
Sellers use comps to understand what similar homes in the area are selling for, allowing them to set a list price they feel confident in. Comps also help home sellers clarify their home’s selling points, which will be highlighted in the home’s description when it’s listed for sale.
Homebuyers
Homebuyers use accurate real estate comps for making an offer. By researching similar properties in the area, buyers can verify that the listing price is fair, or if the price is too high or low. Comps are also helpful in creating a strategy for negotiating a home sale.
Home appraisers
Home appraisers use comps to determine a property’s fair market value. Since no two homes are exactly alike, they compare recent sales of similar properties in the same area to estimate a home’s worth. Lenders require appraisals to ensure a home is worth the loan amount, making comps a key factor in the mortgage approval process.
FAQs about finding real estate comps
1. What makes a property a good comp?
A comparable property should have similar characteristics to yours, including:
- Location (same neighborhood or within a 1-mile radius)
- Square footage
- Number of bedrooms and bathrooms
- Year built
- Property type (single-family, condo, multi-family)
- Recent sale date (ideally within the past 3-6 months)
2. How many comps should I look at?
Aim for at least three to five comparable properties to get an accurate price estimate. Using too few comps can lead to skewed results, while too many may dilute the relevance.
3. Can I use active listings instead of sold homes?
Not really. Active listings show what sellers hope to get, but sold homes reflect actual market value. Pending sales can also provide insights, but sold comps are the most reliable.
4. Why do comps in my neighborhood vary so much in price?
Home values depend on market demand, home condition, and unique features like upgrades, lot size, or views. If prices vary widely, dig deeper into each comp’s specifics.
5. How often should I check for new comps?
If you’re selling or buying soon, check for updated comps every few weeks. Markets can change quickly, and more recent sales provide the best pricing insights.
A final note on real estate comps
Finding and analyzing comps can be tricky. However, your local real estate agent has the resources and expertise to walk you through the process. They can help you nail down a good price to list your home.
Are you curious how much you can make from selling your home? Check out Redfin’s home sale calculator to see what your estimated home sale proceeds could be.
The post 5 Ways to Find Real Estate Comps in Your Area appeared first on Redfin | Real Estate Tips for Home Buying, Selling & More.
