What are Comps?
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The term comps, used frequently in the real estate industry, is simply short for comparable sales.
In the task of generating a listing price for a property to be sold, a listing agent finds recently closed or pending transactions that are similar to the property that is being listed. Using the closing information of multiple comp properties serves to guide the agent to arrive at the current value or market value of the property.
An active listing agent is knowledgeable about current real estate sales. They are in and out of properties daily and can be extremely accurate when using comps to calculate listing prices. Within the comps that are used, there is a method of adding to or taking away from the listing price. As an example, the listing agent knows that one of the comp kitchens is dated and has older appliances. Comparing that comp sale to the new listing property that has a newly updated kitchen with newer appliances, will generate plus dollars for the new listing.
Using a licensed professional listing agent to sell your property comes with valuable training, experience and irreplaceable day to day knowledge of local real estate.