How to use Active Comps....

Sounds simplified, however, if your property isn't selling....this might be helpful...

When many brokers "pull comps", they tend to look at pending and sold comparables to gauge the price your property will likely sell at. This makes perfect sense, given that your property is only worth what a buyer is willing to pay for it in the current market.

However, I also make a case for looking at active comparables before you decide on the exact listing price. Here's why:

Once your house hits the market, it is in direct competition with other properties of similar style, size, and condition in the neighborhood- active comparables. Sold and pending properties are no longer a viable option for a buyer.

When listing a property- any property- you must ask a very economically significant question:

"If I was a buyer ready to buy right now, what other properties of similar characteristics in the same price range would I want to look at?"

Then go tour these properties. Make a note of what is different. Be honest. Buyers don't just see one house; they see several before they make a decision. You want your property to be the one they know is the best house for the money. Without question. Price it that way.

You can see how well this works by tracking your showings. Your broker should be following up with every showing to get feedback from potential buyers. If you haven't had the number of showings you were expecting, revisit those active comparables. They will tell you why.

Good luck on your next project!