What is a comp and why is it so important?

A comparative market analysis, also known as a comparable, or comp, gives you true market data to compare property and determine values. There are two types of market analysis; both are critical in understanding the market. A competitive market analysis shows what is currently on the market for sale. This helps determine market supply and how a property you want to sell “competes” with other for-sale property. A comparative market analysis shows what has recently sold—important in establishing what the market was willing to pay for similar property in the recent past. Investway’s comps include actives (currently for sale), solds, and expireds which will provide you all the data you need to make reasonable analysis of property value.

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