Weighing in the Factors with Comparable Sales
Terms for investments are everywhere in real estate. You may hear
lenders, agents and brokers talking the real estate jargon. If you
are searching for a way to be a part of the real estate world for
any type of investment, you will want to become familiar with the
different terms that are used in real estate. The first one to
identify is comparable sales.
Often times, comparable sales will be termed as comps. These will be
the basis of your real estate investment and are important to know.
If you are looking at a property, always ask what the comps are on
the property. Your real estate agent, or you, will then research a
variety of factors to compare your property with the others around
it. You can find these through various companies, the multiple
listing service, (MLS), and even courthouses and newspapers.
Some of the comps that are included are the history of the property,
the sales from the past, the sales of the other homes, the
demographics of the area, and the different trends that have
affected the sales. Anything that will affect the investment that
you plan to make on the home is what you will need to look up when
Why is it important to look up the comps. By doing this, you will
know whether you are making the correct investment or not.
Technically, the value of the home should go up. At the same time,
the value will need to be the same as the other homes. If you don't
have a balance between the historical investments and the
neighborhood investments, you could end up paying too much.
When looking at cash flow, you should always begin with the
comparable sales. This will give you a good idea about what is
happening with the real estate that you are interested in and
whether it is worth your time and investment. Finding the comps is
the first step to moving over the threshold and into your new home.
ABOUT THE AUTHOR
Bob Schwartz, is a Certified Residential
Specialist, CA licensed real estate broker with
has over 27 years of residential real estate experience, authored a
number of published articles and served as an expert witness for
San Diego lawyers. You can contact
Bob via e-mail at email@example.com or visit his highly popular
San Diego real estate website at:
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