What Are Comps in Real Estate?

If you have ever wondered what your home is worth, you have probably heard the word "comps." It comes up in almost every conversation about pricing a home, and it is one of the most useful ideas a homeowner can understand.

Here is a plain explanation of what comps are, how we use them in Langley, and why two homes on the same street can still sell for different prices.

Comps, in one sentence

"Comps" is short for comparable sales: homes similar to yours that have recently sold nearby. They are the best evidence of what buyers are actually willing to pay today.

Notice the word sold. Asking prices tell you what other sellers hope to get. Sold prices tell you what buyers really paid. When we price a home, sold comps carry the most weight.

What makes a good comp?

A good comp is as close to your home as possible in the ways that matter to buyers:

• Location. Same neighbourhood, ideally the same part of it. In Langley, a home in Willoughby and a home in Brookswood can be a similar size and still appeal to quite different buyers.
• Property type. A detached home is compared with detached homes, a townhouse with townhouses, an acreage with acreages.
• Size and layout. Finished square footage, bedrooms, bathrooms, and how the space flows.
• Lot. Size, shape, usable yard, and what can be built on it.
• Age and condition. A newer home or a fully updated one sits in a different bracket than one that needs work.
• Timing. The more recent the sale, the better it reflects today's buyers.

Why no comp is a perfect match

No two homes are exactly alike, so comps are adjusted. If a comparable home has a renovated kitchen and yours does not, its sale price is adjusted down to compare fairly. If yours has a larger lot or a mortgage-helper suite, the comp is adjusted up.

Some of the features we look at most closely in Langley and the Fraser Valley:

• Suites. A legal or well-built suite can matter a great deal to buyers who want help with the mortgage or room for family.
• Updates. Kitchens, bathrooms, roofs, windows and mechanical systems.
• Garage and parking. Especially for townhouses and homes on busier streets.
• Views, privacy and backing onto greenspace.
• Strata details for townhouses and condos: monthly fees, the health of the building, and any upcoming projects.
• Acreage and farm land. Zoning, land use rules and outbuildings can change value a lot, so these need extra care.

Why online estimates often miss

Online home value tools use comps too, but they cannot walk through your home. They usually do not know about your new kitchen, the suite downstairs, the view from the deck, or the busy road behind the fence. That is why an online number can be well off, in either direction.

Your BC Assessment value is not the same thing either. It is based on market value as of July 1 of the year before, and it is set for property tax purposes, so it can lag behind the market or miss what makes your home special.

How we use comps when we price a home

When we prepare a home evaluation, we:

1. Pull recent sales of similar homes in your neighbourhood.
2. Look at homes currently for sale, which will be your competition, and ones that did not sell, which show where buyers drew the line.
3. Adjust for the differences between those homes and yours.
4. Visit your home in person and walk through it with you, so nothing important is missed.
5. Give you a price range and explain how we got there, in plain language.

The goal is a price that attracts serious buyers early while protecting your bottom line.

The short version

Comps are recent, nearby sales of homes like yours. They are the foundation of a good price, but they only work when someone who knows the area adjusts them carefully for what makes your home different.

If you are curious what your home would sell for, we are always happy to put together a free, no-pressure evaluation for you.