Metro Detroit real estate explanations

Posted on Posted in Buyer Tips, First time home buyers, Seller Tips

Comparables – You are buying Northville real estate and your Realtor says he will check the comparables for you.  What does comparables mean?

A comparable is sold homes that are similiar to yours.

A good comparable is:

  • very close in location to the subject property.  In the same subdivision or neighborhood is best.  Then within the major cross streets.  Then within a square mile of the subject property.
  • similar in style.  If the subject property is a ranch then the comparables should be ranches.  Colonials to colonials.  Split levels to split levels.
  • similar in square footage and characteristics.  You can’t compare a 1000 square foot home to a 3000 square foot.  You would like to stay within 200 square foot.
  • should have sold recently.  Within the last six months is preferable.
  • should be similar in lot size and characteristics.  So if it is a subdivision lot you can’t compare it to a home with 3 acres.  A home with 3 acres would most likely be worth more.  A waterfront home can’t be considered a comparable to a non-waterfront home.

By checking the recent sold comparables you will be able to find out what the fair market value for homes in the area.  Then you will be able to compare the list price to the comparables.  Then you can make a good decision on what to offer on the Northville Home.

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