December 27, 2021

Why House Comps Are An Important Part Of Pricing Your Lanham Home

When selling your Lanham MD house, your goal is to sell it for what it’s worth. But sometimes the memories that we associate with our homes can cloud our judgement. At the end of the day, your home’s value isn’t as easily quantifiable as you may assume. 

Due to the ever-changing market, you will need to find a more tangible way to price your property. One of the most reliable ways to do this is through comparable sales, otherwise known as house comps. 

Let’s cover four reasons why house comps are an important part of pricing your Lanham home!  

1.) Realistic Pricing Perspective

Sometimes there is a substantial difference between your asking price and the actual price the home will sell for. Take a look at the final price of recently sold homes in your area to give you an idea of how much your home may actually be worth. For example, you may find that your neighbors down the street had their home listed for $400,000 but only sold it for $375,000.

2.) Tangible Facts and Figures 

Comparing your property to recently sold homes with a similar location, square-footage, features and structure is like having a real estate model to base your pricing decisions off of. So when you are looking for a house comp, make sure you are looking for an example of a home that has similarities to yours. 

Let’s dive deeper into what each of these factors mean. 

• Location. A house comp will need to be in your exact neighborhood. If the home isn’t in the same neighborhood, the traveling distance between certain destination points, such as a mall or school district, may affect the price of the home. 
• Square footage. Ideally, your house comps should be within 10%-20% of your property’s size. The number of bedrooms and bathrooms should also match (or at least be similar).
• Features. This basically implies all of the bells and whistles. Does the home have wood floors like yours, or carpeting? What about a pool? Curb appeal? Does the home have a beautiful scenic view, or is it facing other homes on the street? All of these features play a role in home values. 
• Structure. This includes factors such as when the house was built and the layout of the home. How many floors are there? Is this a ranch with bedrooms on the first floor, or is it a three-story home with laundry in the basement? 

3.) Realistic Offers

Keep in mind that if a buyer goes into a contract offering more than the home is actually valued at, the buyer’s financing may be put on hold by the lender. Lenders will not approve financing that is more than the home is actually worth. 

By using Lanham house comps to list your home at a fair price, you will avoid any blips with the lender. Even if your buyer plans on paying with cash instead of utilizing a lender, a buyer will typically opt for an appraisal, and may ask for closing credits or additional repairs if the home’s value is lower than their original offer. 

4.) Easily Accessible to the Public 

Just because agents have tools to access real estate data doesn’t mean that comps aren’t public information. This means that a potential buyer can use them as intel for their own bidding as well. So, if you can count on buyers doing their homework on house comps, you should be doing it as well! 

Listing your Lanham home at the right price from the start is the best way to ensure your home gets sold. But what if you don’t feel like putting in the hard work to get your home sold? 4 Brothers Buy Houses will pay CASH for your Lanham property. Contact us today for your free, no obligation cash offer.