Here are some examples of properties and criteria that are NOT considered comparable (and why):
- Completely different homes: if your house is a 2,000 square foot Colonial on half an acre, and your next door neighbor’s Tudor-style house is triple in size, has a pool, and is on 5 acres, that house would not be a comp (while this home is in the same neighborhood, it’s a completely different style with different features and a larger footprint. We look for homes similar to your home)
- Proximity: your friend’s house that is similar in size and condition… but 30 miles away (here we have a similar home, but not in the same town. Real estate is hyper-local, so the value of two homes that are extremely similar but in different towns will present different valuations)
- Expired listings: in real estate, looking at what homes have sold for is gold. Not what they’re listed for, what they’re listed for but expired at, but what buyers will pay for a home. (Expired listings don’t offer much value; if anything, it shows that the house didn’t sell which could be a pricing issue)
- Foreclosures or short sales (many of these sales are at a heavily discounted rate which doesn’t reflect the current market standards)
- Renovation costs: What you paid for in renovations, upgrades and updates unfortunately would not be a comp (cost does not equal value, and while many renovations are good for return on investment, most renovations do not net at 100% of what you paid. While we do take into consideration upgrades and renovations, it is not a 1 for 1 valuation)
- Your Zestimate: some Zestimates are wildly inaccurate and this algorithm has many blind spots. (Zillow has never seen your home in person, Zillow has no idea what it’s like to live in your neighborhood, and Zillow has no idea what the market is like where you live. We never consider Zillow Zestimates when pricing your home – we look for local data and our expertise)
- What you bought your house for, if you bought it more than a year ago (in this market, market trends change bi-annually. If you bought your home within the last year and are looking to sell, that sale price would be a somewhat good comp because the current market is most likely in a similar place to when you bought your home. However, if you bought your home more than 1 year ago, even though it is your home and nothing is more similar to your home than your home, the numbers would be outdated)
- What you wish to sell your home for (what you want to sell your home for would not be a comp as that would be an emotional number, not a number that reflects true market value)
A few things we look for in comparable homes:
- Proximity – comparable homes must be within a certain radius of your home, and this varies from town to town, depending on the density. Normally we pull homes within about a mile radius around the home. If a home is on the edge of two towns, we would only pull homes in that town, because the other town may have different criteria, like taxes or in a different school district (which affects value).
- Specs of the home, such as square footage, acres, bedrooms and bathrooms – comparable homes must be similar to your home at the base level, so think similar square footage and other specs. Other specs we might look at include home style (we would group split level and raised ranches together for example), year built, charm or unique features, and additional features or rooms (like a home office or pool)
- Condition of the home – comparable homes must be similar to yours in terms of condition. For example, if your home is a 4,000 square foot Colonial built in 1920, we would not pull a 4,000 square foot Colonial built in 2025, because the conditions of the two homes would be vastly different – one is 100 years old and the other is 1 year old
- Sale price – sale prices reflect the true market value, which is why we *sometimes* but don’t normally pull homes on the market, under contract, or expired. What buyers pay for a home is what the home is worth (and if someone paid $500,000 for a home very similar to yours, you can expect to sell your home for around $500,000 as well)
As a local real estate team, something our agents offer is complimentary, detailed home valuations to anyone interested! At our initial meeting, we can also discuss…
- Your next steps, such as if you’re thinking of buying another home, relocating, downsizing, looking for a 55+ community, or renting
- Renovations needed to your home to gain the most ROI. This could be anything from fresh paint and light landscaping to updating bathrooms and swapping out new appliances
- We can refer you to almost anyone in our industry, including mortgage brokers, attorneys, movers, plumbers, painters, contractors, inspectors, stagers, and more
- The local market, what homes in your neighborhood have recently sold for, and comparable homes
- The future and the bigger picture – whether you’re just curious about where your home stands in the current market, are seriously considering selling your home soon, or are considering selling in a few years, this is a great first step and a baseline to see your home’s value and what it could sell for – now, or in the future
