My client submitted an offer for a home based on the recent comps in the neighborhood. The seller’s agent responded with a counter-offer for full price, based on a comp that is 15 months old.  The agent copied and pasted the comp information into her email reply, and I was almost convinced, until I saw the date. That gave me a good, loud laugh!

In case you don’t understand agent-speak, comp is short for “comparable”, which is a property similar to the subject property, that has sold in the last three months. I only use comps for the most recent three months because that’s what an appraiser would use. I check comps to make sure my clients know what the going price for a property is, and also so that they don’t pay too much. It also helps to avoid any potential problems with the appraisal.