Question Details

David Baker, Real Estate Pro in Phoenix, AZ

What is the best way to comp your homes/possible listings?

Asked by David Baker, Phoenix, AZ Mon Oct 29, 2007

In this crazy market it is getting harder to price a home right. What are some of you real estate professionals doing to make sure they are priced right to sell? Do you compare with only sold in last 30 days? Do you look at that and what is pending? What have you found that works best?

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Answers

3
Alot depends on where in the country it is, what type of property and the immediate area comps sold fot the previous 6 months.
Web Reference: http://iansellsnola.com
0 votes Thank Flag Link Wed Oct 31, 2007
I look at the comps with a jaundiced eye. I'm more concerned about WHAT sold than HOW MUCH. Let me explain; in some areas where foreclosures are rampant, check with DataQuick for zip codes in your area, we are seeing "short-sales" plus REO's popping up everywhere. The "Short-sales" are dramatically lowering prices to generate an offer. Since most of the "Short-Sales" seem to be originating with loans made 2005 to present, the "Comps" they generate should be looked at with a grain of salt! They give misleading information. We had a sale where the Sellers had purchased just over a year previously. This was a "Short-Sale", yes, just a YEAR of homeownership! Their "friend" had sold them the house and also originated the loan on the property. They had paid horrifically over the asking and had a loan which was a total "predatory" product. They had purchase the home for $649,000 with much of the overpaying going to closing costs, lender fees, etc. It sold for $449,000!! Now--you look at that "Comp", pull the MLS "history" on this house and see that homes are falling 30%+ in this area??
I'm of a belief we should give these "short-sales" pre-foreclosure, post-foreclosure sales their own section and NOT use them for comparable sales. Of course the bigger question is WHY you would want to put a family INTO this area as more and more loans will be going belly-up in the future!!
I really concentrate on the "pendings" and "Continue to show" properties plus my current ACTIVE listings or the "Competition"!! If you're not setting a new price in our market you are going to SIT there unless you have something so superior in presentation, square footage, lot size, bedrooms, that the product wipes out the competition. If not then PRICE is king!!
0 votes Thank Flag Link Mon Oct 29, 2007
I think a mix of both, you have to see whats pending and look at closed. Get aggressive get on the phone with those agents and see if they will disclose any information that could help you set the right price. Alot of agents wont disclose the information about the actual cost of accepted offer, wich i think is fair to the clients if you are planning on sending in a backup. But for help listing a house, i wish agents would help out a bit more. We all will be on that side of the fence sooner or later.
0 votes Thank Flag Link Mon Oct 29, 2007
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