Yay! Just be tough about what house to get. If it's not quite right, make sure it's a darn good buy. I am ruthless about house-buying, and I insist on seeing a big batch of comps for the previous year so that I understand the local market. It's just too much moola to waste.
What are "comps"? The comparable properties lat year? The Internet sites offer information about this particular house's appraisal last year. Usually it was lots higher than the price they're asking now. IN fact, 100% of the time that's the case. Any other advice? I need it.
'Comps' are the comparable properties for the house/condo you are considering. This what the appraiser will use and therefore the bank for loan approval purposes. They look at similar properties...and their most recent sale prices. I think these days real estate agents can get this information for you.
No...The comps are comparable properties that have been sold. They use how much similar properties have sold to appraise the property you want to buy---cuz that's how much the bank is willing to loan. But if you have access to comps for recent sales of similar properties, and what is also active or in escrow, it can give you, as the potential buyer, a feel for whether an asking price is reasonable. And in the current housing context that could be especially helpful. The number of short sales and bank owned sales are continuing to influence prices...but that will vary from neighborhood to neighborhood. Some areas have had more of these, others not so much.
8 comments:
Yaayy!! Congratulations to you! Now you can find that dream condo!
That's great! Have fun looking at possibilities.
the other L
Yay! Just be tough about what house to get. If it's not quite right, make sure it's a darn good buy. I am ruthless about house-buying, and I insist on seeing a big batch of comps for the previous year so that I understand the local market. It's just too much moola to waste.
What are "comps"? The comparable properties lat year? The Internet sites offer information about this particular house's appraisal last year. Usually it was lots higher than the price they're asking now. IN fact, 100% of the time that's the case. Any other advice? I need it.
'Comps' are the comparable properties for the house/condo you are considering. This what the appraiser will use and therefore the bank for loan approval purposes. They look at similar properties...and their most recent sale prices. I think these days real estate agents can get this information for you.
Very exciting...
the other L
So are these the properties the sites say "If you like this one, you might like..."?
No...The comps are comparable properties that have been sold. They use how much similar properties have sold to appraise the property you want to buy---cuz that's how much the bank is willing to loan. But if you have access to comps for recent sales of similar properties, and what is also active or in escrow, it can give you, as the potential buyer, a feel for whether an asking price is reasonable. And in the current housing context that could be especially helpful. The number of short sales and bank owned sales are continuing to influence prices...but that will vary from neighborhood to neighborhood. Some areas have had more of these, others not so much.
Hope this helps.
the other L
Thanks L.
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