What does comps mean in real estate?

When a seller offers a property for sale with the stipulation that the buyer pay a commission to the seller’s agent, that buyer is said to have “committed” to buying the property. If the buyer backs out of the deal, the agent will typically try to get a new buyer to offer a higher amount to compensate the seller for the lost opportunity cost, and this is done by using the list of recent sales for similar properties. The list of recent sales for similar properties

What is comps mean in real estate?

When a buyer looks at a listing, they will take into account the current asking price and what other properties are currently for sale in the area. If the current listing price is higher than what other properties are selling for, it may indicate that the property is overpriced

What does comps mean in real estate investment?

Comp refers to the comparison of the value that a property is currently worth against what the seller initially paid for it. The current value of a property is the estimated market value at the time you look at it. If you want to know the true value of a property, you need to look at the recent comps — the list of recent sales of similar properties in your area.

What does comp mean in real estate appraisal?

When you’re looking to purchase a property, it’s important to understand whether or not there were recent sales in your area. The current asking price of a property might be lower than the appraised value, so if the recent sales are lower than what you calculated, you’re in for a fight.

What does comp mean in real estate agent?

The commission that a real estate agent charges is a percentage of the total amount of the sale. The commission is usually a percentage of the total sales price or the list price of the house that the seller has listed. Some commission splits are fixed percentages, while others are a percentage of the final sale price. For example, a 6% commission is common for a straight commission but might be 15% for multi-offer situations.