Home Buying in Phoenix>Question Details

M. Cruz, Home Buyer in Surprise Farms, Surp...

Would a home sold at auction be a comp for the home I would like to put on the market?

Asked by M. Cruz, Surprise Farms, Surprise, AZ Tue Jul 9, 2013

I would like to list my home on the MLS and after doing research on my own looking at public records I was able to see what comparable homes sold for. I recently discovered a home that would be an exact comp just close at the end of May 2013 for a good price. This home was sold at auction. It was never listed on the MLS for regular buyers to see. Could this home be a comparable for mine? The home sold for a good price -- probably sight-unseen -- and I would love to use it as a price comp for my home.
Other details are: purchase price can be viewed by the public (just had to dig around Maricopa.gov and AZNVC.com, the deed is a Trust Deed, paid for in cash.
Thank you!

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A sale is a comp for your home so long as it is within the scope of the subject property. Distance, bedrooms, bathrooms, lot size, square footage, age, sales price. I am currently working to dispute an appraisal that came in with a home that was older and sold at auction as a comp, the appraisal did not support the price we were looking for. I supplied 3 other properties for the appraiser to review, they accepted 2 of the 3 and doing the math would have raised the price $14,000. The appraiser did not raise the value at all, still at $300,000. Bottom line, appraisers have a difficult job and the biggest problem is values and adjustments for differences of the properties used as comps.
Good Luck.

Matt Puzz
Licensed Loan Originator
Hunter Financial Group
1711 West Greentree Drive Suite 111
Tempe, AZ 85284
office: 480-755-1226 x1221
toll free: 877-985-5464 x1221
AZ-LO0915068
NMLS# 213777

My goal is to provide you the best mortgage solution. I appreciate referrals to your family, friends, and co-workers.
1 vote Thank Flag Link Sun Jul 14, 2013
All homes sold that are in your area would be comps. The closest in location, amenities, size and close date will be the best comparable sales. So yes even the ones bought at auction.
2 votes Thank Flag Link Tue Jul 9, 2013
From what you are saying it looks like you may not have pictures available, or a detailed property description. Even with the same square footage and floor plan, you still need to make adjustments based on condition, upgrades, and several other factors. You need to be very careful when using comps without making the proper adjustments. Make sure you have a good Realtor by your side. Listing your property at the right price from the beginning will make a huge difference. I buy and sell a lot of properties and have found that the hard way.
2 votes Thank Flag Link Tue Jul 9, 2013
Good Morning,
Comps seem to be all over the board these days. I list my homes above comps and advertise them to my clientele who general pay more. I have a specialized niche of people relocating.
If you want more info, please give me a call or check out my website at http://www.JimRedSellsHomes.com
2 votes Thank Flag Link Tue Jul 9, 2013
You have options..
A home sold at the auction may or not be used by an appraiser. What I mean is if there is a home more of a match to your property in: a) size ; b) condition, and c) recently sold, would be use more likely than the home at the auction.
A recent transaction I just closed, the bank gave specific instructions to the appraiser in regards to active vs closed properties in relation to the subject property.
If you want a BPO for free on your property:
Property Values at http://proactiverealestateadvisors.com/property-values/
or http://realestatevalues.us
1 vote Thank Flag Link Wed Jul 10, 2013
A good listing agent will provide the appraiser with as many good comps as possible. Sometimes appraisers need help doing their research. I like to give them a packet of nearby comps that justify the contract price to reduce the possibility of the appraiser using the quick comps that often do not do the property justice. If you'd like my help listing your home please give me a call 480-845-4820. In addition to providing you with professional service and great advertising of your property I also give all my clients who close their sale with me a $150 gift card to Harkins Theaters as a token of my appreciation. Thx. Feel free to check out my website at MovieHomes.com
1 vote Thank Flag Link Wed Jul 10, 2013
It could definitely be used to determine market value, but there should be plenty of homes sold to help with knowing what to list your house for to ensure your competitively priced. If you haven't found a realtor to list your home, I would be happy to help any way I can. I don't take on a lot of clients to ensure that I have a flexible schedule for the ones I do have. Call or email me at (602)733-3223 or nwolfe@hsmove.com
1 vote Thank Flag Link Tue Jul 9, 2013
M. Cruz
Yes this home can be a good comp to your home. When you look at comparable property you want to make sure it is within a close radius to your property with similar square footage and amenities. If you call I will work up a Comparative Market Analysis for your home to insure you are going to get top dollar.
1 vote Thank Flag Link Tue Jul 9, 2013
Values are up, it may be considered however there should be many other homes to compare.

Feel free to contact me direct for impute and evaluation.

Lucinda Tkach
602-799-6846
1 vote Thank Flag Link Tue Jul 9, 2013
Hello M. Cruz

A sold property that is close to you its a good indicator of what your property might be value at but not the only one, probably the strongest one but condition of the home,options; location size of lot and more; I would love to help you sell you home call me to set a meeting.
you can send me a email with your homes address i will send you a CMA

6023241121 or 6025255617

raoul@urhomefinder.com
1 vote Thank Flag Link Tue Jul 9, 2013
Hello... comps don't have to only come from the MLS so if it's a good comp, supporting highest value, then it doesn't matter where it came from or what type of sale it was necessarily. However, appraisers do have guidelines to follow when it comes to distance from a property, how long ago it closed, size comparison, etc.

You as a consumer do have some data available to research, but you do not have all the data we as Realtors do. Plus, there are many factors we are trained to look for when comparing comparable sales that a homeowner wouldn't know to look for.

Often times, I am able to sell properties for more than someone was expecting. Working with sellers to maximize their profits is the majority of my business and something I specialize in. Over the past couple years, my sales price to list price ratio is about 99.4% so when I give a pricing suggestion, we are real good about obtaining it.

I would be glad to meet with you to discuss your home and personal situation in order to hopefully work together from there.

Feel free to learn more about me via my website http://www,MetroPhoenixAgent.com or give me a call @ 623-203-2264.

Thank you.

Justin Schlegel
1 vote Thank Flag Link Tue Jul 9, 2013
An AUCTION sale should never be used as a COMP unless you are looking for the Auction value. To find the "fair market" value you should really be using fair market sales unless the majority of sales are REO, then you can use bank owned. Short Sales should not be used at all as there is no set of uniform rules or regulations and most sell for a price anything but fair market value.
0 votes Thank Flag Link Sun Jul 14, 2013
Mr. Cruz,

Homes sold at auction are generally not good comparable properties. They are often times sold below fair market value and the title is not a warranty deed. A more comparable property would be one that is sold in a none arms length transaction between buyer or seller.

We provide a free comparable market analysis so please let me know if you would like for me to send you some comparable properties for review.

Sean Heideman, Broker
Position Realty
Office: 480-213-5251
Fax: 866-232-2256
Web: http://www.PositionRealty.com
0 votes Thank Flag Link Tue Jul 9, 2013
All appraiser are going to Governmental Guidelines and Standards. I am a Mortgage Banker in metro Phoenix, AZ. I lend in both Arizona and California where I will be pleased to help you. If you or someone you know is looking for financing options, please feel free to contact me or pass along my information. 623-340-0934 Korene Clopine-Seaman NMLS # 218520 KLCSLoanTeam.com We are Direct Lenders, WE CLOSE LOANS!
0 votes Thank Flag Link Tue Jul 9, 2013
A Trust Deed is merely the vehicle used to convey title for a property that was held in a Trustees Deed. The General Warranty Deed offers the most protection for a clear title. A Trust Deed can only warrantee the period of time the property was held by the Trustee. So this property may have been a foreclosure though Trust Deeds are used in other instances as well. Auctions are, as a rule of thumb, not a good comp. There are too many variables involved that have nothing to do with marketability. For one thing, there is no requirement for an appraisal if it is a cash sale - be it in whole or in part. Your best bet is to get a professional opinion of value from either a real estate professional or a certified appraiser. I would love the opportunity to discuss this with you in further detail. As a experienced broker, I can offer you a very accurate opinion of value on your property as well as valuable information on market trends that will positively affect your property value. Please give me a call at 602-796-1111 and we can discuss your unique property in further detail.

Rose Mullins, Associate Broker
Platinum Premier Realty
602-796-1111
rosemullins@q.com
0 votes Thank Flag Link Tue Jul 9, 2013
Traditional sales would be a good comparable. Please give me a call and I can explain more about it.

Best Regards,

Real Estate Professional / Prestige Realty
Bianca Bennett / 602-570-7898
Bianca@InvestInArizonaHomes.com
Website: http://www.InvestInArizonaHomes.com
0 votes Thank Flag Link Tue Jul 9, 2013
Dear M:

All homes are comparables in teh same neighborhood, however it would not be a good comparable. The best comparable would be a traditional sale for a traditional sale with similar care, upgrades, lot location etc. Usually a auction comp is sold much less than a tradtional sale. Ask your Realtor to run a comparable report for you.

Call if you have any questions.

Jeffrey Masich, Realtor, GRI, MBA
HomeSmart
Arizona homes and land for purchase or sale
http://ArizonaHomesLand.com
JeffMasich@ArizonaHomesLand.com
480-556-0940
0 votes Thank Flag Link Tue Jul 9, 2013
The appraiser, if a non-cash sale, will choose the comps. You can let Jim or her know about this one though. Appraisers use both tax and ARMS records though.
0 votes Thank Flag Link Tue Jul 9, 2013
Any sold in your immediate area ,especially a exact would be a great indicator of value. A realtor could help find multiple comps, if you have not found one i could help .Ron 602 -350-0113
0 votes Thank Flag Link Tue Jul 9, 2013
http://www.MetroPhoenixAgent.com

I had accidentally inserted a comma where a period should have went in my first post.
0 votes Thank Flag Link Tue Jul 9, 2013
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