Taking the correct approach to researching real estate comps will help you pick a listing price for your property. The end goal of course is to make money with each deal. So before you decide on a price and when you are looking at comps, here are a few tips to keep in mind.
Look at every similar home that has sold in the neighborhood over the past three months to determine comparable sales. The list should contain homes within a 1/4 mile to a 1/2 mile and no further, unless there are only a handful of comps in the general vicinity or the property is rural. Also, pay attention to neighborhood dividing lines and physical barriers such as major streets, freeways or railroads, and do not compare inventory from the “other side of the tracks.” Perceptions and desirability have value.
Compare similar square footage, within 10% up or down from the subject property, if possible.
And lastly, compare homes with similar ages. One neighborhood might consist of homes built in the 1950s, co-mingled with another ring of construction from the 1980s. Values between the two will differ. Compare apples to apples. This will help you list for a competitive price and get a good deal each time.