How to Create an Effective List of Comparables for Your Home Appraisal

When it comes to getting your home appraised, one of the most crucial aspects is preparing a list of comparables, often referred to as "comps." These are similar homes in your area that have recently sold and serve as a benchmark for determining the value of your property. Creating a well-thought-out list of comparables is essential to ensure a fair and accurate appraisal of your home.

Here's how to prepare an effective list of comparables:

1. Define Your Search Criteria:

Start by specifying your search criteria. Look for homes that are as similar to yours as possible. Consider factors like:

+ Location: Choose properties in your neighborhood or a similar area.

+ Size: Find homes with a comparable square footage.

+ Age: Look for houses built around the same time.

+ Style: Match the architectural style if possible.

+ Features: Consider features like the number of bedrooms, bathrooms, and any significant upgrades.

2. Utilize Online Resources:

Many online real estate databases allow you to search for recently sold properties. Websites like Zillow, Redfin, or your local Multiple Listing Service (MLS) can be valuable resources for finding comps.

3. Narrow Down Your Selection:

Once you've gathered a list of potential comparables, narrow it down to the most relevant ones. Focus on properties that are the closest match to your home in terms of the criteria mentioned above.

4. Review Sales Data:

Analyze the sales data for each comparable property. Look at the final sale price, the date it was sold, and any unique circumstances surrounding the sale. Properties that sold more recently are generally more relevant.

5. Consider Adjustments:

Keep in mind that no two homes are identical. You may need to make adjustments to account for differences between your home and the comparables. For example, if a comp has an extra bedroom, you may need to adjust its sale price downward to reflect your home accurately.

6. Organize Your List:

Create a clear and organized list of comparables. Include all relevant information, such as property address, sale price, sale date, square footage, and any adjustments you've made.

7. Share with Your Appraiser:

When your appraiser arrives, provide them with your list of comparables. Be ready to discuss how you selected these properties and any adjustments you've made.

8. Be Open to Discussion:

Keep in mind that your appraiser may have a different perspective on the comparables. Be open to discussing your choices and any adjustments, as this can lead to a more accurate appraisal.

By following these steps and putting together a well-researched list of comparables, you can contribute to a smoother and more precise home appraisal process. An accurate appraisal is not only beneficial when selling your home but also when refinancing or assessing your property's current value.