Comparable market analysis aka "comps" is a great guide to finding out the list price of the house you are selling on the real estate market. While your Realtor will try to go through an in-depth analysis to come up with the most accurate list price for your home, sadly, not all comps turn out to be the way sellers had in mind.
Your comp may affect your list price, especially if the Realtor fails to take a couple of considerations into the equation. Investopedia defines comparable market analysis as "an examination of the prices at which similar properties in the same area recently sold."
Given this definition, let us take a look at three ways your comps can affect your list price:
1. You Live Right Next to Trouble Areas
The location is one of the most important things to consider when setting a list price for the house you are selling. As Realtor.com points out, location is one of the things that your real estate agent will take note of when trying to do a comparable market analysis on your home before coming up with the list price.
The publication notes that your real estate agent should "drive by the surrounding neighborhood, looking at the higher sales on your street versus the other blocks" in order to get a good comp.
2. Your Realtor was Not Able to Weigh in Other Factors
If your real estate agent was unable to weigh in other factors such as taking into account the fact that the house that was sold prior to yours lived right next to a toxic site may be a red flag. Your real estate agent must be able to take all these factors into consideration in order to come up with a good rundown of your list price.
3. You are the First Home to Sell in Your Neighborhood
The publication shares that being the first home to sell in the neighborhood can also have its downside as there is nothing to do a comparison with or nothing to serve as a basis for the said analysis. If you feel that the real estate agent has given you lower comps, then you are free to "challenge it" and ask to run the comps again.
