“Comp” is industry shorthand for the word “comparable”. What is a comparable, and what makes a good one? That’s what this article is all about.
“Comps… huh?!?”
Real estate agents and appraisers use comparables to determine the value of a home. Actually, there are three different methods used in determining the value of a home, but the approach that utilizes comparables is the one that holds the most weight. The whole idea behind figuring out the value of a home (we’ll call it the “subject property”) is to compare it to other homes that have sold nearby.
A “comparable” is a sale that is A) competitive with the subject property, B) took place on the open market, and C) Read the rest of this entry ?
