Have you ever wondered just how sellers set list prices on their properties? The majority of them use the Multiple Listing Service (MLS) to aid in finding the perfect price point. Because ever-changing property values are relative to a local market, and thus difficult to determine, pulling real estate comps has become a respected method of setting list prices.

If you are a real estate investor, you should know how to run comps on the MLS. Knowing how to do so can help you set list prices backed with research and data, giving you the confidence and accuracy needed to sell a property.

What Are Real Estate Comps?

A real estate comp is a home similar to the one you are trying to buy or sell and can be used to help determine the price or value of the property. Real estate comps (or comparables) can be pulled from data on the MLS, which is a database of properties that have been sold or are currently for sale in a given area. Licensed real estate agents can access this system to...