Real Estate Comps: How To Find Comps In Your Area

If you’ve ever watched a real estate show, you have probably heard the show hosts talk about the “comps” being good or bad. You might just be watching for a glimpse of fabulous real estate or to dream about investing in property yourself. But have you ever stopped to think about what some of those terms actually mean?

Real estate comps are a shorthand way of referring to recently sold houses that are similar (or comparable.) They are used by almost everyone in a real estate transaction - including buyers, sellers, agents, and appraisers - to decide what a house is worth. While you can dig up real estate comps on your own, your best option is to work with a real estate agent who can not just pull some comps more easily than you can - but can also offer you insight based on their experience in the business. Eaton Realty offers free comparable market analysis reports for Tampa Bay homeowners so that you can receive an accurate estimate of your home’s worth at no cost.

Eaton Realty represents buyers and sellers in real estate deals throughout West Central Florida. We know that buying or selling a house can be exhausting and stressful. Our goal is to make the process as smooth as possible for our clients. Whether you’re in the market for a new house or are ready to sell, we can help. Reach out to our Lithia office today to talk to a member of our real estate team.

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What Are Real Estate Comps and Why Do You Need Them?

Real estate comps is the term used for recently sold homes in a particular area comparable to a house you are looking to buy or sell. For example, if you are searching for a four-bedroom, two-and-a-half-bath home in your area, you can search for similar homes that recently sold. These past sales give you an idea of approximately how much you can expect to spend to buy a house of that size in the neighborhood.

Real estate comps aren’t only based on the number of bedrooms and bathrooms in a house. They should also include the total square footage and features or amenities such as a pool or water access.

Comps are used by almost everyone involved in real estate transactions, including:

• Buyers: Buyers use comps to determine if a house they want to buy is reasonably priced. Comps may also be used to negotiate a price. For example, if the asking price is $600,000 and similar homes in the neighborhood have recently sold for $500,000, then the buyers may base their offer on these numbers—or try to get a better price based on the comps.
• Sellers: Sellers use comps to set a price for their home. Looking at comps can help sellers understand what price is reasonable based on their house and current market conditions.
• Real estate agents: Realtors use comps to assist clients with both buying and selling houses. Realtors are skilled at using comps and can analyze whether a particular house is really comparable to others. They can offer more insight into real estate comps to ensure that their clients are either pricing their property well or making an offer that is likely to be accepted.
• Appraisers: Appraisers use real estate comps as one factor in determining the value of a home. Lenders require appraisals before approving a loan. Based on comps, an appraiser will determine whether a house is worth more or less than the purchase price. The mortgage will be approved if the house appraises “well” (i.e., at or above the asking price).

Of course, comps aren’t the be-all and end-all when determining a home's value. Even houses with similar stats and amenities can have significant differences - such as higher-end finishes, a better layout, a picturesque view, or a bigger pool. Some houses might also be better maintained and have an updated HVAC or new roof.

These factors won’t necessarily show up on a real estate comp - but they are important when it comes to pricing a house for sale or deciding whether a house’s asking price is reasonable. A Tampa real estate agent won’t just rely on comps when advising you. They will go beyond the numbers to help you make a truly informed decision when purchasing or selling a house.

Finding Real Estate Comps for Your Neighborhood

Whether you are buying or selling a house, it’s a good idea to find at least 3 similar properties to know that you’re in the right ballpark regarding price. Having a minimum of 3 comps means you’ll get a better idea of what a house with certain features should sell for - and allows you to determine if a particular price is an outlier. There are several ways that you can find real estate comps for your neighborhood.

Research Homes On Listing Sites

First, you can use a real estate listing website like Zillow or Realtor.com to find local comps. Many sites offer a feature that allows you to look for recently sold homes. You could set the filter to “recently sold” and then further select the neighborhood, number of beds and baths, square footage, lot size, and more.

Not every website offers this option, but it can be helpful if you want an idea of what houses are selling for in a particular community. Just be careful not to get too specific with your search, as you may not return any comps. Ideally, the comps will be recent—within the past month or so—to understand what the market is currently like.

Research Public Property Records

Second, you can research public property records in your area. In Hillsborough County, you could search the public records database for recent sales or tax records. This process can often be tedious, as the government agencies that maintain these databases often don’t have the most sophisticated software. The databases also might take a while to be updated and may not have all of the necessary details (such as square footage) to truly compare properties.

Enlist A Real Estate Agent For Help

Third, the best way to get real estate comps is by working with an experienced Hillsborough County real estate agent. Realtors rely on their own database, called the multiple-listing service or MLS. The MLS has the most accurate and up-to-date information on real estate sales and listings. While sites like Redfin or Zillow do have “recently sold” homes, this information isn’t always accurate or up-to-date. For example, a house might have sold in the community you’re looking for, but if the listing agent doesn’t update the listing, it won’t appear in your search.

A real estate agent can also perform what is known as a comparative market analysis (CMA). Home sellers utilize CMAs to find the right price before listing a house for sale. A CMA will typically include:

• 3 to 5 real estate comps for a particular property;
• A description of each comparable property, including the number of bedrooms and bathrooms;
• The square footage and lot size of each comp;
• The listing price of each comparable property;
• The final sale price of each comp;
• and The price per square foot for each property.

Most Realtors use specialized software to generate a CMA. The agent will also provide their own insight based on the condition of the home, the current market, and any other factors that could affect a listing or sale price. In this way, you aren’t just getting a list of other properties and some numbers - you are getting true expert analysis.

Buying - or selling - a home can be overwhelming without doing all of the leg work on your own. At Eaton Realty, we walk you through the process and offer expertise on disclosure and inspection reports and real estate comps. With more than 250 years of combined experience, we know real estate is about more than just numbers on a screen. We help you cut through all the data to get to where you want to be.

Get Your Free Home Value Report

When it comes to selling a house, there are a lot of details to keep track of - like packing, moving, open houses, and more. With all of that on your plate, figuring out how to correctly price your home may seem daunting. Fortunately, you don’t have to do it alone. The best, most comprehensive, and easiest way to procure real estate comps is by working with a Tampa real estate agent. Our agents can provide you with a home value report at no cost.

At Eaton Realty, we know that selling a house can be stressful. We work with our clients to make the processas straightforward as possible. We won’t just show you some listings—we will make sure that you truly understand every aspect of the transaction, from real estate comps to listing and closing. To learn more about our real estate services, fill out our online contact form or call us at 813-672-8022 to talk to a team member.