and which to ignore? The following comparable sales should not be used. Very few of these properties sell for a fair value. Bank Owned/REO Properties: 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. Short Sales: Buyers and their agents hate short sales because they are tricky and unreliable. A buyer will often fall in love with a short-sale home, only to find out the banks won’t approve the short sale. Agents do not like to show them for the same reasons. As a result, the pool of buyers for a short sale is much smaller than for a regular listing. 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-maintained 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 Don’t use an ugly, outdated home as a comparable.
IT'S ALL IN THE TIMING
Timing is a slippery slope. If you take too much time with a sale, holding out for the perfect offer, you’re probably doing yourself a disservice.
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