If you are into the real estate property business then you must be well aware of the terms used in real estate property. But if you are naive to the industry and planning to put your step on the property ladder then you must know the terms used in the real estate world and their importance. Well, before making any decision like buying, selling or renting the real estate property one should take advice from the property valuer.
Today in this post, we are going to share the information about real estate comps i.e real estate property comparables in a most simplified way –
First, understand what are real estate comparables –
Comparables are the properties similar to the subject property sold recently. Similarities like property type, area, number of rooms, bathrooms and floors, amenities and most importantly the comparables are located near the subject property. Also, comparable should be sold out in the past few months under the same market condition.
How to use real estate comparables while planning for property investment –
Comparables are the properties similar to the property which real estate investor is planning to buy or sell. Real estate comparables give an idea about the current and actual market value of the property price in which an investor is interested. Thus real estate property comparables help to know the price of the investment property.
When Buying – Investors got to know the property price which is offered by a vendor is right or not.
When Selling – Investors got to know the actual market value of their property or property price at which they should sell it.
Why we buy an investment property?
Real estate property business is a lucrative one. Everyone who put their steps in the real estate market aims to earn more profit and investment properties are one such way to make money by making transactions in the real estate market.
Importance of the real estate comparables while making property investments –
Comparables act as a guide to make the informed real estate decisions. Here are the benefits of using comparables while making a real estate property investment.
Low investment risk – Before making an investment in real estate property using comparable to know the value of it prevents you from overpaying while buying the property. Thus you can get the value for money.
Earn profits – While selling the property, using comparables allow you to know the actual market value of the property and thus you can sell your property at more price than its actual market value. This helps you to earn profits.
Turn the deal in your favour – Study of comparables provide you facts and figures. Which gives you confidence while selling or buying the property. Thus while buying real estate property, you can negotiate well and when selling you can keep your profit margins high in order to fulfil your property investment purpose.
Comparables act as a guide for you in real estate property world. Hire the residential property valuer or commercial property valuer to evaluate the property value. For the best residential property valuation services contact us.