Sold comparables are your best guide. If your agent will run a CMA without short sales and one of just short sales, then you can decide how to go. Unfortunately short sales and bank owned homes are part of the market. Often they are overpriced while active because listing agents need to try and get the top of the market to justify whatever offer eventually comes in.
Look for sold comps to provide your range and active comps to define your strategy. Best of luck.
There is truth to what your agent says, but it is more complicated than that.
When you are marketing your home it is a product in competition with other similar Homes (products) on the market. The key issue is what homes are your competition and how are they priced. In today's buyer's market buyers compare homes and prices on the Internet. They tend to look for bargains and ignore homes that are overpriced. There are increasingly more short sales on the market now. Nationally, they sell for an average of 81% of the price of non-short sale properties. That 19% discount, however, includes the fact that many short sales (not all) have suffered from neglect and need updating and/or repair. Short sales are definitely pulling prices down in Sussex County.
If there are short sales in your market that are in good condition and compete directly with you home in terms of location, size, bedrooms, baths, etc. then you need to compete with them on price. If not your better condition may be cause for a somewhat higher price. Short sales can take 2-6 months or more for an approval by the lender, so people who need certainty as to their closing date would not want a short sale and avoid those homes. The issue is your motivation. Pricing at the short sale level will probably get your home sold faster. At a higher price there is more risk since we can expect more short sales pulling down prices further in the months ahead.
Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
There are some buyers that will shy away from Short Sales, and they can be cumbersome, but the process has improved generally and with the right resources, buyers can get them done. So assume that your buyer will also be looking at all comparables - including distressed sales.
Your goal - with the assistance of your agent - is to position your property so that it "pops" among available choices. I always advise my sellers to assume that there will be just one buyer that will be interested in our home and its comparables - position your home so that when that buyer comes along, you are the winner!
Good luck to you,
Unwavering Commitment to Service
When I do a market analysis for a seller, I do not include short sales unless they are the only homes on the market.
I work with many buyers who will not subject themselves to even looking at short sales. Sometimes it can take 18 months to get one through.
I would interview other agents if I were you.