June 26th 2019

Firstly, what are comps? Comps mean 'comparable sales' and refers to homes that are similar to yours in size, condition, location, and components. These comps are what buyers turn to when deciding what to offer you for your home, so they are extremely important.

Comps in your area can have a significant impact on your home’s value. Whenever someone sells a home in your area, the listing agent pulls a list of comps and puts them into a document known as a CMA (Comparative Market Analysis) for the seller. A CMA is a list of homes sold in the area over the past 3-6 months. It is used to figure out the current value of your home based on comparable homes. A home may be considered similar based on size, number of beds and baths, quality, location, condition, etc. The BEST comps are ones that are currently 'pending sale' because this means a deal was made between the buyer and seller, and the data from this deal will be the most up-to-date. 

When home prices are on the rise or investors renovate other homes in your area, increasing that home’s value, your home’s value will likely rise as a result. However, if the market is in decline, sellers do short sells, or banks start foreclosing in your area, it can have a negative impact on your home’s value. In other words, if the homes around yours are keeping up with renovations, selling to high bidders, and remaining in good shape, your home will be worth more because it's surroundings are worth more. On the other hand, if the homes around yours are losing value and not selling, yours will begin to move in the same direction.

If you’re interested in finding out how the comps in your area are impacting your home’s value, The Coastal Marketing Group can help! It's just as important not to overanalyze comps as it is to use them. When you work with a trustworthy and experienced agent, you can leave the analysis up to the pros! Our agents will be able to provide a reliable representation of homes like yours, and odds are your agent will be personally familiar with many of the recent sales in your area. 

Give us a call at (609) 884-4242 and we can get started on your CMA today! You may be surprised at how much your home could actually sell for.