How do you analyze real estate comps?

How do you do a home comp analysis?

How to Do a Comparative Market Analysis

  1. Evaluate the neighborhood. …
  2. Gather details about the subject property. …
  3. Select comps. …
  4. Adjust for differences. …
  5. Determine the sold price per square foot after adjustments.

What do appraisers look for in comps?

The terms “comps,” “comparables” and “comparable sales” refer to prices paid for recently sold homes that are comparable in size, style and location. … To determine the current market value of a property, agents and appraisers analyze recent comparable sales in the area.

How do you do a comparable market analysis?

Where to Get a Comparative Market Analysis

  1. Visiting Websites With CMA Information. Some websites, such as realtor.com, offer comparative market information for free. …
  2. Hiring Professional Real Estate Appraiser. …
  3. Going to Open Houses.

How are comps calculated?

Comps are typically determined by comparing the property in question to other properties within a 1-mile radius, which have sold within the last year and have similar attributes (such as the same number of bedrooms, age, subdivision, square footage, etc).

How accurate is zestimate?

How Accurate is Zestimate? According to Zillow’s Zestimate page, “The nationwide median error rate for the Zestimate for on-market homes is 1.9%, while the Zestimate for off-market homes has a median error rate of 7.5%.

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How many comps are in a CMA?

On average, agents include a minimum of 5 comps in their report.

How do I do a free market analysis on my house?

Visit a real estate website such as Zillow, Trulia or Redfin and use the search facility to find homes for sale in the area. Review the active listings and recently sold property listings to find homes that are similar in size, age and amenities to your property within a radius of 1 or 2 miles from your home.

Do appraisers use comps?

Comps are sales records of recently sold homes. Appraisers and real estate agents use them to get the most accurate estimate possible of a home’s value, and you can, too.

How many miles do appraisers look for comps?

Comps should ideally be within one mile of the subject property, and not over any major barriers like a freeway, a river or railroad tracks. Comps need to be in the same city as the subject property in most cases, even if a comp in another city is less than a block from the subject property.

How recent do comps have to be for appraisal?

Bare Minimum: Appraisers must use at least 3 closed sales as comps. One Year: Comps need to have sold within the past 12 months, though an appraiser can make an exception if there is a good reason to use older sales (custom home, no truly recent competitive sales, etc…).