What is a “comparable” in Charlotte NC real estate? Comparable real estate sales are the basis for determining realistic market value.
Real estate market value for Charlotte NC homes is set by what buyers would realistically be willing to pay for a house. Recent comparable sales are the indicators of what buyers are willing to pay but not every recent sale in your neighborhood is a valid comparable.
Comparable sales for your house are:
-Similar in style, A ranch cannot be compared to a 2 story house!!!
-In the same neighborhood (or within a mile’s distance if there’s no formal neighborhood)
-Similar in size
-Closed sales from less than six months ago anything older is extinct
Identifying valid Charlotte NC real estate comparables for a house is the first step in evaluating market value but the process doesn’t end there.
Once valid comparable sales have been identified all of those houses must be adjusted in comparison to the “subject” house (the one whose market value we’re evaluating).
No two houses are exactly alike. No matter how similar there will always be differences in features, cosmetics, upgrades, condition, property, views, upgrades (or lack of upgrades) that must be considered when evaluating real estate in Charlotte NC.
One of the biggest myths is that all neighborhood sales are automatically comparables – absolutely not!!! If you have a 2 story house, sales of ranches in your neighborhood are NOT comparable sales for your house, it’s two completely different styles.
I make that point again because I continue to see online “valuations” that use invalid comparables and style is one of the biggest offenses. There’s more to a valid Charlotte NC real estate comparable than simply looking at neighborhood sales.
Neighborhood market activity is important but it’s not the defining factor in what your house is realistically worth, it’s a great indicator of buyer traffic and inventory but will never take the place of an actual in depth analysis using valid comparable sales.
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Copyright©2008 by Diane McDermott, All Rights Reserved, “What Is A “Comparable” In Charlotte NC Real Estate?”