The key to finding accurate, comparable sales is to find the properties that are closest in location, condition, square footage, features, etc.
HOW TO DETERMINE WHI TERMINE WHICH COMPARABLE SALES Y LE SALES YOU SHOULD USE AND WHICH TO IGNORE
The following comparable sales should not be used. Very few of these properties sell for a fair value. Here is why each of these property types is not good for comparable sales. Bank-Owned/power of Sale: Banks always sell their homes for less than they are worth. The average bank-owned home in today’s market is selling for 5% to 10% less than its fair value. This is true even for homes that are in good shape. Ugly Homes: These are homes that are unappealing and aren’t kept up. People buy homes because of emotion. Logic doesn’t always apply. As a result, a well-kept-up home will sell for more money. We have seen well-maintained homes sell for 10% to 15% more than an unappealing home. We have seen professionally staged homes sell for 20% more than an unstaged property. Yes, the condition of a home counts. Don’t use an ugly home as a comparable. Are you in a buyer’s or seller’s market? While you’re scouting other homes for sale in your area, pay attention to how long they’ve been on the market.
100
Powered by FlippingBook