Leslie Cabar…, Home Seller in 90036

What do you do when there are no comps for your home? In other words, over the past year, no homes comparable

Asked by Leslie Cabarga, 90036 Wed Mar 26, 2008

have sold in my area, which is a very specific sort of zone in Los Angeles

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7
Leslie,

Speaking as a former appraiser, IF this is the case normally in a typical situation an appraiser will search immediately in the neighborhood (within 1 mile) and if there are not enough comps they are permitted to search a further distance away from your home. So there will always be comparables for any and every home, the appraiser will include the specifics as to why they had to search outside the norm in the report, but this practice is acceptable.
4 votes Thank Flag Link Wed Mar 26, 2008
Leslie,

The best way to find the true value of your home is to contact an appraiser. When an appraiser is trying to value a property that has very unique features, your zoning for instance, s/he will try to locate similar properties outside the area and adjust for locational differences. Alternatively the appraiser may use older comps and adjust for market trends.

Without further details about your property, it is hard to say. If the zoning of your home permits commercial uses, then the value of the home may be irrelevant. It may be more important to know the vale of the land. This is know as "highest and best use" and states that the highest possible value of a particular piece of land may have little to do with what is currently on the land. It is key to know what you can put on the property and then determine if the current improvements still add value.

I have been very general, because it is hard to give a clear answer without knowing the specifics of the zoning etc.

You can contact an appraiser at http://www.gribin.com and they can give you a solid value of your property.

Good Luck.
2 votes Thank Flag Link Wed Mar 26, 2008
There are always comparables available in any market area and condition. Changes in the search criteria and more research work along with the necessary and appropriate adjustments and analysis of the market area will determine a value needed for selling or purchasing a property. I would recommend consulting with an expierenced appraiser.
1 vote Thank Flag Link Wed Mar 26, 2008
Hi Leslie,

It's a great question. I have run into this problem on a few occasions. It's rare, but it happens.

Usually, appraisers look at a 1/2 mile radius and comparables that sold within the last few months (six months max). In a situation like yours, appraisers will have to find a similar neigborhood outside of your area that is most alike to yours.

It takes a little more work, but it's doable.

The other way to price your home in a situation like yours is simply to test the market. Have your agent take the best educated "guesstimate" on the price and place the property for sale. The response from the market will pretty much validate the pricing of your home.

Hope this helps and good luck!
1 vote Thank Flag Link Wed Mar 26, 2008
My advise to you would be to have an appraisal done if you want to find out the value. Appraisers have strict guidlines in the current lending market so you should make sure you deal with an active appraiser - and they will be able to tell you exactly what they would be able to consider as comps for your property. Some appraisers are willing to do a "partial" or "drive-by" appraisal for a fraction of the cost that you would pay for a full written appraisal.
Web Reference: http://MrWestside.com
0 votes Thank Flag Link Tue Sep 28, 2010
Leslie
Right now if I run your zip code
27 Actives
2 Pendings
8 Expireds
10 Solds
2 Cancelled listings

I do not know your specific situation, however it would seem that based on these quantities there should be enough be get an idea. The other portion of the pricing model is the overall market. In most areas homes that were bought in 2004 or 2005 are on the undecided list. The chances are homes purchase priorr to 2004 will have appreciated. Homes purchased after 2004 will have seen a drop in value.

So be doing some comparisons you can come up with a rough price range.

However, if you need to sell, there are other factors. When do you need to sell? Where are you going, and when do you need to be there. Depending upon your situation, it is possible to strategize the best pricing model. We do know that homes that sell in the first 30 days on market will sell closest to asking price, so know that if the home is for some reason under-priced, there are buyers looking and the market will probably not let it sell for less than it is worth.

OTOH, if it is overpriced, you will likewise not see any showing activity, so the price could be adjusted.
I recommend talking with a Realtor that knows your specific market for a complete analysis.

Good luck
0 votes Thank Flag Link Wed Mar 26, 2008
Keith Sorem, Real Estate Pro in Glendale, CA
MVP'08
Contact
Hi Leslie,
Our office offers full service real estate professionals. We (LA Real Estate Group) have an appraiser in our office and he faces issues like that quite frequently. He takes the closest similar comp and adjusts the value according to sq footage, add ons. condition, view, neighborhood, etc.. . Value may increase or decrease as necessary. Each sq footage has a dollar value, each additional room has a dollar value, and so on.. This is what banks use when they need an official value and no comps are available.
You can contact our appraiser at AgopA@sbcglobal.net if you have any questions he can help with.
Good Luck to you,
Lou & Alex
LA Real Estate Group
info@myLARealEstateGroup.com
http://www.myLARealEstateGroup.com
0 votes Thank Flag Link Wed Mar 26, 2008
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