Definition of Comparable Sales:
Comparable Sales in Orange County:
Comparables, or what we refer to commonly in Orange County to as “Comps” is a real estate appraisal expression which refers to properties with qualities and attributes that are common to the subject property that is being appraised. This can be accomplished either by a BanCorp REALTOR® who will establish the value of a potential client's home or property through a comparative market analysis, or by a licensed appraiser through a real estate appraisal, or by a Broker though a Broker Price Opinion (BPO).
Here is some useful information when considering which comparables are most relevant to use in Orange County:
Last sale price: Homes at the very high or low end of the estimated price range should be kicked out almost from the start of the comparative market analysis (as a licensed appraiser will likely through these out themselves). This high/low indicator likely means it doesn’t fit many of the lower criteria.
Orange County, California - Views & waterfront Homes: BanCorp agents won’t compare waterfront homes to homes not on the water, or homes with great views to homes with partial or nonexistent views.
Orange County, California - Number of bedrooms & baths: It is smart to exclude properties with significantly more or less beds and baths. Comparing homes with 3, 4 and 5 bedrooms will occasionally work out (but not recommended; comparing those homes to ones with 1 and 2 beds is not recommended practice in Orange County.
Orange County, California - Age & style of home: When A REALTOR® is able to choose from more than 7 or 8 homes, this gives them a wide selection to choose from, and they can be a little more selective in choosing which homes to income in their CMA. In these instances it is good to exclude homes built in different architectural styles.
Orange County, California - Condition of home: This is relevant only if the condition of the comparable home differs greatly from the target home. Obviously the person comparing the report does not want to compare a fixer-upper to a recently remodeled home.
Orange County, California - Lot size & usability of land: Lot size is a significant factor only when the difference is substantial; It is not a good idea to compare a home sitting on an acre of land to one sitting on 7,000 square feet.