Posts from January 27th, 2023
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What Are "Comps," and What Do You Need to Know About Them in the Current Real Estate Market?
Every industry has jargon an outsider wouldn't understand, and probably doesn't need to know. But real estate is a field where almost every "outsider" needs a bit of insider knowledge in order to successfully buy, sell, or rent a place to live a few times in their lives.
For instance, you could go your entire life without hearing the term "comp" once, but the minute you decide to buy or sell a house you'll hear agents say it like it's a word you probably already know. It's not nuclear physics, so you can probably figure out what they're talking about, especially in the context they're bringing it up. But just in case you've never heard the term before, "comp" is short for "comparable."
Okay, but what exactly is a comparable?
Comparables are houses that are currently on the market, under contract, or (most importantly) recently sold. They're used to compare against a house you're planning to buy or sell, in order t...