what is a comp search

A comp search is performed by your mortgage professional or appraiser. It is a search in the nearby areas for properties that match your home.

Comparable properties are used to determine the correct value for your home. This helps insure that you do not get a mortgage for more then the home is actually worth.

The values used for comparable values are the actual sale prices of similar homes in the area. An appraiser cannot look at the listing prices to determine value, only actual sale results.

One of the first components to measure a likely comparable would be the likeness in property with regards to size, location and age. These components along with most recent sales of similar homes aid determinging your home's value.

Some variables that are important are:
How long ago did the comparable property sell? The closer the sales date the more accurate the comparable.

How far away is the comparable from my property? Typically you should start by looking at properties that have sold outwards to a one mile radius. Generally, you should not cross Highways, Railroad tracks or geographic points of interest.

There are some places you can check the value of your own home online.

» DISCLAIMER: The information contained in this article on 'what is a comp search' is a collection of contributions by licensed mortgage professionals and is not the opinion of Broker Outpost LLC. Always consult a licensed professional before applying for a mortgage.