Comps question??????

Question

I was just asked to check comps in my surrounding area, what in the world does that mean and where would i find the information. They asked because they want to lower their property tax by comparing it with the neighbors...

Answer 1

Comps is short for comparables.  The house next door to yours should sell for the same as your house so if you compare the sales prices of your neighbors houses to yours then you have something to base what the value of your house should be.

FYI, when someone says something you do not understand, just ask them to explain to you.

Answer 2

Comps are comparable properties in the area. There are several real estate web sites that allow you to enter the property info. and it will pull up other properties that are similar to yours. Some even have the property tax value in the description. Just type in real estate, property valuation, etc. Print out the ones that most match your property.

Good luck.

Answer 3

It means they want you to find out how much other houses in the neighborhood are selling for. You can usually find that info online.  

Answer 4

The word "comp" is short for "comparable sale".

If you live in a tract-home, it is probable that there are other home in the same neighborhood that are similar, if not identical, to yours. You might have heard this other property referred to as a "model match".

Typically, in Real Estate, a property is worth what a comparable property has sold for.  Although this isn't exact, it is close.  For example, if a model match in your neighborhood sold for $200,000 last week, it is highly unlikely that yours would sell for $500,000 this week.

Because values of Real Estate are falling quickly in many areas and because property taxes are typically based on the value of the property, it is sometimes possible to get your property taxes lowered if the value of your property has gone down substantially.  

Typically a Real Estate Agent can provide you with a free Comparable Market Analysis or CMA.