If you are entering into property investment, one of the most important pieces of information that you need to peruse is the comparative sales data. One should never take for granted that the pricing on a home or property that you are considering investing in is reliable.

What you want to do is use this data as a guide to give you a good idea of what is happening in the area that you are thinking of investing in. This is data that is compiled by the realtor that is selling the property and will be based on many different factors.

There should be a history of sale prices for comparable homes within the area, and also for those that were listed and did not sell that were comparable in nature as well. The comparable sales data compiled by the realtor will look very closely at homes within the immediate area that is as close to the particular home or property that is being priced. This will include the square footage, as well as the number of bedrooms and bathrooms and lot size, and also what it is constructed of.

What the realtor will utilize to gather his information will be the multiple listing services to begin with. There is a lot of information that is available in the mls listings that the public can now be privy to. However, there is some information that is only available to the realtors. This information found in the mls data does not include pending sales or transactions which are going to be the most current and up to date information.

In the mls information the actual sale price can only be disclosed once the sale has been finalized.

Then of course there are the public records that the realtor will also use to gather his information for his comparable sales data. One of the issues here though is that the information is quite outdated and when the realty market is changing on a fast paced scale as it most often does, this information is not as reliable and it can lead to misdirecting an individual.

In any event, the information that is gathered for the comparable sales is quite extensive and is not something that should be overlooked by the property investor. It is important to study the material thoroughly in order to have a good idea that the potential property the investor is thinking of is going to be the right move for them. it will also help them with their negotiations when it comes to placing an offer on an interesting property that may be somewhat overpriced.

It has to be remembered that when the listing price for a property is being determined that the final decision is the owner's. Most often they will go with the advice of the listing agent, but not always. That is why you as an investor must rely on the comparative sales data to help you with your decision. Once an individual becomes a seasoned investor, they will know intuitively for the most part if a property is overpriced.