What is Real Estate Comps Software?
Real Estate Comps Software uses comparable real estate transactions (“comps”) to determine a property’s value or potential value after being repaired.
Comps take into account previous deals that are most comparable to the one in question.
Similarities include location, property type and use, size, recency of comparable transactions, and so on.
For example, a real estate agent looking to value a 2-bedroom, 2-bathroom unit in New York’s Financial District might use real estate comps software to determine an appropriate valuation. He or she could filter down the criteria to include previous sales of other 2BR/2BA units in the same neighborhood over the past three years, take a mean and median reading (and perhaps weight more for recency), and recommend a price based on those findings.
One could also use comps as part of a greater overall valuation approach. Discounted cash flow is another common way of valuing real estate and other cash flowing asset types like stocks.
Related software categories
- Real Estate Agency Software
- Real Estate Property Management Software
- Lease Management Software
- Real Estate CRM Software
- Real Estate Transaction Management Software
- Commercial Real Estate (CRE) Software