Eliza Theiss 
There are multiple approaches you can take to find accurate real estate comps, including real estate websites; multiple listing services; public records; automated valuation tools; and, of course, employing a seasoned real estate professional. Generally, it’s recommended to combine multiple approaches to increase the precision of your comps. By understanding how to find real estate comps, you can make informed, data-driven decisions when buying or selling.
1. Automated valuation tools
Websites like PropertyShark provide access to agile automated valuation tools (AVTs), ample property data and detailed property reports. Specifically, AVTs such as PropertyShark’s Comps tool allow users to highly customize their analyses by creating special target areas, even drawing your own area directly on a map. Main filtering criteria include size, age, length of ownership, price and property type among many more.
Due to their efficiency, consistency, speed and data-driven approach, AVTs generally provide the most accurate comps for a property outside of what a seasoned professional can offer. AVTs can provide the most accurate comps as they can:
- Process large volumes of current and historical sales data with advanced algorithms.
- Eliminate human errors and biases that can appear in manual valuations.
- Instantly access and analyze real-time market and sales data.
2. Real estate websites
Real estate websites are valuable tools for finding real estate comps because they provide access to a large database of property listings, both active and off-market
However, online data can provide only limited insight without solid market knowledge and detailed information on the condition of properties used for your house comps. Therefore, it’s essential to combine both online and offline research for reliable comparables. Moreover, because not all real estate websites have the exact same coverage, it’s recommended that you research multiple reputable real estate websites to find home comps that meet your criteria.
3. Multiple Listing Services (MLSs)
These are local databases with all area listings and comprehensive information on recent transactions, listing prices and property features. They will also usually have historical data, which allows professionals to identify trends and offer clients more informed pricing advice.
That said, MLSs do not include off-market sales or other types of property transfers, potentially leaving out crucial data for your house comps. Additionally, MLSs are accessible only to licensed real estate professionals. That means that the average person wondering, “What do comps in my area look like?” will have to hire a real estate agent or broker if they want comparables based on MLS data.
4. Public records
County public records comprise large volumes of valuable information and are usually free to search online. In addition to the local county assessor’s office, you may also find real estate comps by researching deeds and other recordation documents; tax assessments; building permits; and even foreclosure filings.
Transaction documents typically include property sales information and transfer details, which can be used to identify comparable properties in terms of location, size, age and features, whereas sale prices help with accurate valuation comparisons.
However, researching public records is time-intensive and provides limited and/or outdated information. Plus, not all county assessor’s offices have digitized documents or online databases, so you may have to gather the information via phone or email or by visiting in-person.
5. Professional agents
One of the safest options is to work with a real estate agent and/or an appraiser as they have access to data that the general public does not. Agents also have the experience to identify the best comparable sales for your subject property. Plus, if you’re looking for how to find real estate comps in your area, an expert can provide the most accurate and up-to-date information on comps for a property in your market.
How to Determine Accurate Real Estate Comparables
Simply choosing similarly sized, recently sold properties nearby is not going to result in accurate home comps. Rather, you must consider a host of other factors and make adjustments in valuations.
- Compare apples to apples
Always focus on properties that are similar in square footage; lot size; frontage; location; year built; number of bedrooms and bathrooms; condition; improvements; zoning; style; and amenities — even school districts, if possible. The closer the match, the more accurate the comparison.
- Determine price per square foot
Calculating the price per square foot normalizes property size differences and facilitates a more standardized comparison between properties. Simply divide the sale price of each comparable property by its square footage.
However, keep in mind that basing valuations simply on price per square footage will not result in reliable comps for a property as this eliminates the influence of factors such as property condition and amenities.
- Adjust for property differences
Because it’s nearly impossible to find fully identical comparable properties, adjusting for differences such as amenities, upgrades or deficiencies is crucial. This is particularly important when dealing with niche properties, limited stock, unique features or a slow/inactive market.
- Consider sale timelines
Properties sold within the last six months are typically considered the most relevant comparables because they best reflect current market conditions. If you need to include properties sold further back in time — perhaps as a result of decreased sales activity — you’ll have to carefully adjust for changes in market conditions.
- Evaluate market trends
Market trends, such as supply and demand dynamics, help gauge whether the market is depreciating or appreciating. For example, properties in popular locations or during periods of low inventory will usually sell at higher prices, while oversaturated markets will often see lower values. As such, adjustments must be made for property appreciation and depreciation when finding real estate comps.
- Adjust for local market specifics
Recognizing the unique characteristics of the local market cannot be ignored because factors like neighborhood characteristics, area amenities, school districts and proximity to transportation hubs can significantly influence property values.
- Review the condition of properties
Consider the overall condition of the comparables in relation to your subject property and prioritize properties in similar condition. If a comparable property (or the target property itself) requires significant repairs or renovations, adjustments that reflect these costs are crucial when trying to find home comps.
Why Are Real Estate Comps Important?
Real estate comps are important because they provide a pricing benchmark, as well as ensure accuracy and fairness for both sellers and buyers. House comps also create negotiation leverage for real estate professionals and play a pivotal role in the appraisal and financing process. Ultimately, finding real estate comparables facilitates informed decision-making, transparency and confidence.
Disclaimer
Information provided on this page is purely informational and is not, and should not be regarded as, investment advice.
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About PropertyShark
PropertyShark is an online real estate database and property research tool that provides building details, ownership information, comparable sales, and foreclosure data. Founded in 2003, PropertyShark serves real estate professionals and consumers in New York and other major U.S. markets.
