Also consider if your house is closer/farther away from a highway or has a better/worse view than a nearby comp. This will definitely affect value. • Age: Compare homes of the same vintage. If your building is five years old, don’t compare it to one that is fifty years old. If you own a two-bedroom units, don’t compare it to studio units. • Recent sales: The more recent the sale, the more valuable the comparable will be in setting the price of your building. Sales in the last six months are okay; sales in the last three months are better. • Soft features: This is where you must trust your gut in pricing your property. Some variables, like curb appeal, nearby shopping, community spirit, and noise are hard to quantify, but will affect your home’s value. When selecting comparable properties, avoid considering distressed properties —foreclosures, short sales, and ugly properties. These bargain properties often sell at a 5% to 10% discount and aren’t good indicators of your building is worth.
2. Think About Market Trends
When you look at comparable prices, you should also glance at how many days a property stayed on the market before a sale. You want your building to sell quickly, not eventually. And “days on market” can indicate whether your local market is hot (or not). Right now the market is red hot! If nearby buildings are disappearing overnight, then you’re in a seller’s market that could justify an optimistic price. If houses are taking months to sell, then you’re likely in a buyer’s market and setting a price slightly below your competition could give you a big advantage. 206
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