In the San Joaquin real estate industry the word “comparables” is often shortened to “San Joaquin comps.” This is simply referencing San Joaquin homes that have recently sold that are comparable in size, style, condition, and location of the home that is going up for sale. San Joaquin comps are very important for both the buyer and the seller.
San Joaquin comps help the seller to set an “asking price.” for their home. The San Joaquin comps are typically homes that have sold within the last 6 months, but can sometimes go up to a year.
As the term suggests, an “asking price” is simply what the seller is asking to receive for the home. The buyer’s realtor will also be able to show their client comps. If the comps that the buyer’s agent pulls for the buyer are priced below the comps that the seller is using, it gives the buyer leverage on offering a price below the asking price.
San Joaquin comps are only valuable when you are comparing similar San Joaquin homes to each other. With that in mind, while each home has some differences, you want to be as close as possible. Some areas to focus on when choosing San Joaquin comps are:
It is obvious that a smaller San Joaquin home costs less than a larger home if all other factors are comparable. For better or worse a lot of buyers will not even look at some homes if they fall below a certain number of square feet; however, square footage is not always utilized equally in different homes so there are other factors that need to be taken into account.
A lot with a water view is going to be priced differently than a small lot with a neighbor close to the property lines of each side of the house. Similarly a San Joaquin house on 10 acres is going to be priced differently than a house on a small lot.
This is one of the most important factors in San Joaquin comps. Two San Joaquin homes that have a 500 square foot difference but each have three bedrooms and two bathrooms are closer to comparison than two homes that have the exact same square footage but one home has 1 bedroom and the other has 3 bedrooms.
Once you have used the other factors to find some homes that are comparable to your home, you can start to look for the market value of your home. No matter what an individual thinks their home is worth, the market will determine an accurate gauge of what the asking price should be.
Now that you know what comps are, you know how to use them to your advantage. Whether you are a buyer or a seller, work to determine what the price of your current home or future home will be. Remember that determining a price for a San Joaquin home is not an exact science, but the better the San Joaquin comps, the better prepared you will be. Happy house hunting!