How to See What the Current Market Is Like In Your Neighborhood
If you’re thinking of selling your home, a great first step is doing some research about the local market. Specifically, you want to be looking at “comps” – comparable properties in your neighborhood that were recently sold.
Essentially, the comps dictate the state of the local market. A listing price that’s based on reality is based primarily on comps.
When a realtor tells you how they’d price your home, your knowledge of the local comps will tell you just how accurate and realistic their number is. The comps’ selling prices will also tell you whether or not this is a good time to sell your home in the first place.
Here’s how to go about researching the comps in your neighborhood:
Only Look at Recent Sales
You might be thinking, “There are a ton of properties in my neighborhood that look like mine and are currently on the market.” However, a house only becomes a comp after it’s sold. So, when doing your research, the only homes that should matter to you are those that were sold within the past six months.
For this reason, the most recent sales should carry the most weight in your research. That’s where the market is right now, so that’s the kind of offers what you should expect from potential buyers.
Look at Homes as Similar to Yours as Possible
What makes a house a comp? The main factors are size (of the home and the lot), age, layout, and amenities (like a pool). The idea is to look at houses that are as similar to yours as possible, based on characteristics a buyer would find particularly appealing. For example, the condition of a home has a major impact on its perceived value. Location is another big factor. Certain buyers may also prioritize additional features like the aforementioned pool, a multi-car garage, or mature trees.
It’s important to be realistic about these things, especially your home’s condition. Two of the biggest factors that go into a home’s condition in Miami-Dade today is the age of the roof and whether the plumbing is cast-iron or PVC. All else being equal, having an older roof and cast-iron pipes will bring the price down compared to other homes in the neighborhood.
Focus on Selling Prices and Time on the Market
As for specific metrics, you’ll want to pay special attention to the comps’ average for-sale price and selling price. This can give you an idea of what someone might be willing to pay for a house like yours at this time. If you put your house on the market right now, these are the kind of offers you’ll most likely receive.
It’s also helpful to examine how much time the comps are spending on the market before they are sold. If homes are staying on the market for several months, it could signify lower demand, possibly because potential buyers have so many other houses to choose from. If homes are selling quickly, on the hand, it could mean that potential buyers are putting down offers as soon as they see a home that’s priced reasonably.
Where to Find This Information
We recommend looking to reputable sources like Zillow, Redfin, or Realtor.com to find up-to-date information about local comps. You can also check the website of your county’s property appraiser. If you would like us to run the comps on your home, we are happy to do so. Just contact us and we’ll get started right away
