Welcome, visitor! [ Register | Login

Weighing in the Factors with Comparable Sales

Articles September 21, 2018

Terms for investments are everywhere in real estate. You may hear lenders, agents and brokers talking the real estate jargon. If you are finding a way to be a part of the real estate world for any type of investment, you will want to become familiar with the different terms that are used in real estate. The first one to define is comparable sales.

Often times, comparable sales will be termed as comps. These will be the basis of your real estate investment and are important to know. If you are looking at a property, always ask what the comps are on the property. Your real estate agent, or you, will then look up a variety of factors to compare your property with the others around it. You can find these through various companies, the multiple listing service, (MLS), and even courthouses and newspapers.

Some of the comps that are included are the history of the property, the sales from the past, the sales of the other homes, the demographics of the area, and the different trends that have affected the sales. Anything that will affect the investment that you plan to make on the home is what you will need to look up when considering comps.

Why is it important to look up the comps. By doing this, you will know whether you are making the right investment or not. Technically, the value of the home should go up. At the same time, the value will need to be the same as the other homes. If you don’t have a balance between the historical investments and the neighborhood investments, you could end up paying too much.

When looking at cash flow, you should always begin with the comparable sales. This will give you a good idea about what is happening with the real estate that you are interested in and whether it is worth your time and investment. Finding the comps is the beginning to moving over the threshold and into your new home.

No tags for this post.

Related posts

No Tags

70 total views, 1 today

  

Sponsored Links

Leave a Reply

  • What Pitfalls to Avoid and How to Avoid Them

    by on September 21, 2018 - 0 Comments

    The last experience that anyone wants to add to their list is being involved in a real estate deal and having everything go wrong. It is hard enough to simply find a place to move and to have everything from the contract to the loan be put in place properly. If you don’t want to […]

  • Things to Look for When Buying Personal Real Estate

    by on September 21, 2018 - 0 Comments

    There are all kinds of things you will want to consider when buying the real estate that your family will call home. The problem is that far too many get caught up in the small or cosmetic details of the purchase and search that they forget the primary needs of the family in the process. […]

  • Top Ten Terms for Loans

    by on September 21, 2018 - 0 Comments

    Everyone knows that you should never sign on the dotted line without reading the contract. This same term applies to loans. Signing a loan without knowing the terms and what everything means can be detrimental to your finances, credit and future investments. Before you sign on the dotted line, make sure that you know these […]

  • Things to Avoid When Flipping Real Estate

    by on September 21, 2018 - 0 Comments

    Flipping property is rising in popularity as a form of real estate investing. The truth of the matter is that this is one of the more entertaining methods for many investors that are simply ‘itching’ to get their hands a little dirty. The sweat equity involved in these transactions, while attractive, can also be daunting […]

  • Weighing in the Factors with Comparable Sales

    by on September 21, 2018 - 0 Comments

    Terms for investments are everywhere in real estate. You may hear lenders, agents and brokers talking the real estate jargon. If you are finding a way to be a part of the real estate world for any type of investment, you will want to become familiar with the different terms that are used in real […]