Question about "comps."

This may be a stupid question so I apologize in advance So everyone is always talking about looking at "comps" in making a bid on a home but, I feel like it is impossible to figure out what is a true comp. I am only looking in one town but the prices vary dramatically. Unless you have actually seen the the actual comp house - how do you know it really is comparable? I mean, just b/c the house is in the area and is the same size in room #, br's, lot size that really doesn't mean it should be the same price - the layout could be different, the room sizes could be different, the condition could be different, the bkd could be more or less usable, there could be other factors like near a main road, school, etc. Am I missing something?

Re: Question about "comps."

well a real estate professional takes that into consideration and adjusts

it's not just that house A sold for X

so house B is the same

comps are to give you an idea

Message edited 7/24/2010 7:44:57 PM.

Re: Question about "comps."

I also think comps can be screwy.

For example, a house might have appraised for less, but the buyers love it so much and pay full price. And another house can appraise for less and seller comes down.