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.
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Those agents must charge a lot of money for a consult, however, it would be such a good thing to do just to get some useful information. Thank you.
The problem is not everyone is aware of the need to have a comparative market analysis (CMA). So people just up and buy homes that do not even match their needs. Some agents aren’t doing their part too. They try to withhold any information about CMA from prospective buyers. However, if an agent does suggest buyers to conduct a CMA – or even better, conducts it on their behalf – then you know you’re dealing with the right person for the job.