COMPARABLE 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/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 don’t 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-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
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