A comparative market analysis, or “comp,” is used by California real estate professionals to determine the value of a particular property. The value of a home will vary between different cities and even within more localized markets within the city. For instance, a 2-bedroom 1-bathroom home in San Francisco will be priced much higher than an identical home in a suburb such as Hemet. Furthermore, a beachfront property in San Diego will cost more than a similar property further inland.
A real estate agent or licensed appraiser will compare the property characteristics and condition of your property to similar properties within a given radius (usually 1 mile). As each property and property sale is unique, the evaluation process is somewhat variable; the comparative market analysis will give you an idea of the value range of your target property.
If you are planning to sell your home, request a “comp” from a local licensed California real estate agent to get an idea of the value of your property and where you might set the sales price.
If you are purchasing a home, ask your local licensed California real estate agent to “comp” your target property to make sure it is within the value range of the local market and that you are getting a fair deal.