San Diego downtown real estate broker

Bob Schwartz, CRS, GRI 

Certified Residential Specialist

San Diego, California

Telephone - Cell:
(619) 300-8819

Facsimile:
(619) 229-0048

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Bob Schwartz

San Diego real estate broker

Certified Residential Specialist
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Weighing in the Factors with Comparable Sales

Terms for investments are everywhere in real estate. You may hear lenders, agents and brokers talking the real estate jargon. If you are searching for a way to be a part of the real estate world for any type of investment, you will want to become familiar with the different terms that are used in real estate. The first one to define is comparable sales.

Time and again, comparable sales will be termed as comps. These will be the foundation of your real estate investment and are important to know. If you are looking at a property, always ask what the comps are on the property. Your real estate agent, or you, will then research a variety of factors to compare your property with the others around it. You can find these through various companies, the multiple listing service, (MLS), and even courthouses and newspapers.

Some of the comps to take account of are the history of the property, the sales from the past, the sales of the other homes, the demographics of the area, and the different trends that have affected the sales. Anything that will affect the investment that you plan to make on the home is what you will need to look up when considering comps.

Why is it important to look up the comps. By doing this, you will know whether you are making the correct investment or not. Technically, the value of the home should go up. At the same time, the value will need to be the same as the other homes. If you don't have a balance between the historical investments and the neighborhood investments, you could end up spending too much.

When looking at cash flow, you should always begin with the comparable sales. This will give you a good idea about what is happening with the real estate that you are interested in and whether it is worth your time and investment. Finding the comps is the beginning to moving over the threshold and into your new home.

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