Atlanta Home Sales – What are Comparables and Why Do I Need Them?
Are you selling a home in Atlanta and wondering what comparables are? Well you should, because Atlanta home owners cannot just pick the prices out of the air! Any home that a buyer will need a mortgage for will require an appraisal. An appraisal is is an estimate of worth to make sure the home is worth what bank is lending on because the home then becomes collateral to the bank or lender if the home is defaulted on. To accomplish this, banks or lenders will use recent and nearby home sales as a point of reference. These similar properties will be compared against the subject sales home. Comparables are nearby homes preferably in the same neighborhood, and are real estate properties that are very similar to your property with similar features that have recently sold. Once these homes are closed they will affect neighboring home sales through their closed sales price, days on market, and sellers contributions. Comparable properties are historic references that other appraisers will use to determine value for buyers, banks and mortgage lenders. If the value is no their, the banks or lenders will not lend for the agreed upon sales price amount!
Since this real estate crisis began a few years ago we live in different times in the Atlanta real estate market – a time where sales are slow, and Atlanta homes do not sell or sell at a deep discounted price! That is a problem for all those Atlanta homeowners that want to sell their home, but in lieu of low sales prices around them they cannot get what they want in price. However ignorance is no an excuse they still need to know the truth!
All too often when selling a home an Atlanta homeowner chooses an Atlanta listing agent that tells them what they want to hear, or an Atlanta real estate agent that will list their home for them at a steep discounted commission but offers them no credible pricing strategies or a real marketing plan. That is a major mistake and one that will have dire consequences when selling a home. The home will not sell, will stay on the market for an extended period of time, there will be price reduction after price reduction and still no sale! That is not what most home owners want! So before you list your home in Atlanta for sale here are a few tips from an experienced agent:
Comparable Homes Sales
- Homes should be similar styles – “Apples to Apples!” & “Oranges to Oranges!”
- Have similar features – Beds, baths, basement, and constructed of same materials.
- Should be in the same subdivision or neighborhood.
- Same Schools
- Should be in similar condition and have similar upgrades.
- Similar lots.
- Should be a recent sale in the last 90 days.
- What were the seller’s concessions?
- Was the recent sale a foreclosure?
- Was the sale an arms length transaction?
There are some exceptions to the rules if there are no recent sales nearby and a seasoned appraiser will make changes when needed. However homeowners have the responsibility to keep an open and objective mind and weigh out all the facts before listing their home for sale. Otherwise they may be just wasting their time. For more information about selling your home in Atlanta area, please feel free to contact us – we can provide you with a Free Comparable Market Analysis when selling a home or real estate in Atlanta!
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