What makes a good comparable sale?
I am happy to do a comp report for finding the value of your home. The best comparable sale is the same model as your house in the same subdivision—and it closed escrow last week. If I can’t find that, here are other factors that count:??Location: The closer to your house the better, but I don’t just use any comparable sale within a mile radius. A good comparable sale is a house in your neighborhood, your subdivision, on the same type of street as your house, and in your school district.??Home type: I try to find comparable sales that are like your home in style, construction material, square footage, number of bedrooms and baths, basement (having one and whether it’s finished), finishes, and yard size.??Amenities and upgrades: Is the kitchen new? Does the comparable sale house have full A/C? Is there crown molding, a deck, or a pool? Does your community have the same amenities (pool, workout room, walking trails, etc.) and homeowners association fees???Date of sale: You may want to use a comparable sale from two years ago when the market was high, but that won’t fly. Most buyers use government-guaranteed mortgages, and those lending programs say comparable sales can be no older than 90 days.??Sales sweeteners: Did the comparable-sale sellers give the buyers down payment assistance, closing costs, or a free television? I have to reduce the value of any comparable sale to account for any deal sweeteners.
I can help adjust price based on insider insights – Even if you live in a subdivision, your home will always be different from your neighbors’. Evaluating those differences—like the fact that your home has one more bedroom than the comparable or a basement office—is one of the ways I add value. ??As an active agent, I have been inside a lot of homes in your neighborhood and know all sorts of details about comparable sales. I read the comments the selling agent put into the MLS, have seen the ugly wallpaper, and heard what other REALTORS®, lenders, closing agents, and appraisers said about the comparable sale.
More ways to pick a home listing price – If we’re still having trouble picking out a listing price for your home, look at the current competition. I will be honest about your home and the other homes on the market.?Next, put your comparable sales into two piles: more expensive and less expensive. What makes your home more valuable than the cheaper comparable sales and less valuable than the pricier comparable sales?
Are foreclosures and short sales comparables?
With so many short sales and foreclosed homes around the county having closed over the last couple of years, appraisers are using them more often now which is why I meet the appraiser at the house to discuss the sales and how to treat those comps.
A foreclosed home is usually in poor condition because owners who can’t pay their mortgage can’t afford to pay for upkeep. Your home is in great shape, so the foreclosure should be priced lower than your home.??Short sales are typically in good condition, although they are still distressed sales. The owners usually have to sell because they’re divorcing, or they have hit a financial hardship due to loss of job or illness.