Palmdale Realtor - Understanding Comparable Sales When Buying Real Estate

http://bit.ly/ Jargon for investments commonly used when it comes to the real estate industry.  Lenders, agents and brokers will often speak in real estate-specific terms that aren't used by the general public.  If you are buying or selling a home, or plan to in the near future, gaining a familiarity with the terms used is a very important first step.  Comparable sales is a very important one to know.

You may also hear them called comps.  The reason that this is important is because comps are used to determine the value of the property you are buying or selling.  So, when you are considering a property, you should ask what the comps are.  Either you or your realtor will then compare your property with recently sold properties nearby that have similar attributes.  The attributes are important in determining whether you have a good match to compare.  Things like number of bathrooms, bedrooms, garage, and swimming pool can drive the price of a home.  You can find these through various companies, the multiple listing service, (MLS), and even courthouses and newspapers.

In addition to external comps, some of the comps that are included are the buying and selling history of the property itself, 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. @expono @flickr @fotki @pingfm @sonico @blog @youtube Lancaster Palmdale palmdale home shopping palmdale homes Palmdale realtor Quartz Hill realtor