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Answers (9)
- Saving $1000s Sanson
- Contributions:104
You will always want to compare the full basket of fruit. You want to know what similar homes are selling for based on style of sale (Short Sale/REO/Trustee/Traditional/Fix-N-Flip,etc) You will always want to get a local expert to assist you in this matter. Zillow will not always be able to answer value, because it is too general. A licensed real estate expert will be able to help you come up with a valid comparable homes.
- Emma Beyer, "emmabeyer"
- Contributions:19
Hi KHarris,
It depends what sort of comparison you're talking about. If you are referring to how your lender will conduct an appraisal in order for you to buy a home or refinance, mostly they will include distressed properties (short sale and foreclosures) if they comprise a significant portion of the market. Unfortunately, in Casa Grande 75% of all closings over June, July and August 2011 were distressed sales, which makes it virtually impossible to discount those values.
Sometimes (for instance if you are doing a short sale) the lender will require what's called a Broker Price Opinion, or BPO. In those cases, they may exclude distressed values simply because it does not fit with the valuation protocol. However this does provide a skewed value, since we simply can't ignore foreclosures and short sales in this area any longer.
If you are seeking a valuation of your home from a local Realtor, you would be wise to expect distressed values to form part of that valuation. With such a large portion of our market coming from bank-owned and short sale homes, sellers today do have to compete with those prices in order to sell. For more info you can refer to my article in AZ REALTOR or my blog.
I hope this helps :) Feel free to contact me if you have any questions.
Emma
It depends what sort of comparison you're talking about. If you are referring to how your lender will conduct an appraisal in order for you to buy a home or refinance, mostly they will include distressed properties (short sale and foreclosures) if they comprise a significant portion of the market. Unfortunately, in Casa Grande 75% of all closings over June, July and August 2011 were distressed sales, which makes it virtually impossible to discount those values.
Sometimes (for instance if you are doing a short sale) the lender will require what's called a Broker Price Opinion, or BPO. In those cases, they may exclude distressed values simply because it does not fit with the valuation protocol. However this does provide a skewed value, since we simply can't ignore foreclosures and short sales in this area any longer.
If you are seeking a valuation of your home from a local Realtor, you would be wise to expect distressed values to form part of that valuation. With such a large portion of our market coming from bank-owned and short sale homes, sellers today do have to compete with those prices in order to sell. For more info you can refer to my article in AZ REALTOR or my blog.
I hope this helps :) Feel free to contact me if you have any questions.
Emma
- Donna Hines, "DonnaHinesHoustonRealtor"
- Contributions:13
The rules have changed....Several years ago we could exclude foreclosures and short sales from the market analysis because they were not the majority, just a few. Now that 25% (or more in some areas) of the sales are comprised of these, types of sales they must be included in the analysis.
Just the term "foreclosure" cojures up an image of a home is bad shape..not so today. Some of these foreclosures have nothing wrong with the property. So, in essence it is a comparable property.
A MARKET analysis is ... comprised of "sold properties within a certain time span, with properties similar to yours.... if the house is in good shape, it is comparable to yours .. that is todays market !
Just the term "foreclosure" cojures up an image of a home is bad shape..not so today. Some of these foreclosures have nothing wrong with the property. So, in essence it is a comparable property.
A MARKET analysis is ... comprised of "sold properties within a certain time span, with properties similar to yours.... if the house is in good shape, it is comparable to yours .. that is todays market !
- Spirit Messingham, "TucsonSpirit"
- Contributions:663
Talk with a local Realtor, they can show you sold Comps for your subdivision and YES, Short Sales and REO count towards establishing value regardless if they happen to be right next door or not. A house is ONLY worth what it apprasies for in this market, some potential sellers are choosing to pay for an appraisal upfront so they will know more what to expect. Work with a local, knowledgable Realtor in Casa Grande. Best of luck. Spirit
- Teresa Howard, "YourPreferredAgent"
- Contributions:55
CMAs are derived by compiling data from listings of homes within the same geographical location that are comparable to your house and have sold within the past six months. Unfortunately, in some areas, short sales and foreclosures have saturated the market. Therefore, those homes are usually included when a CMA is prepared.
- David Cooper-Las Vegas, "LasVegasRents"
- Contributions:281
I use sales in the last 6 months within a couple mile radius, but then I also look at all the listings comparable to my house. Prices of sales are sometimes higher than the current listings.
David Cooper
- kharris344
- Contributions:2
Thank you
- Maya Thomas, "MayaThomas"
- Contributions:54
It sounds like you might be asking how to find comparable properties with so many short sales and foreclosures on the market.
If your market is stable and you have enough sales in your area there is a very small chance you won't need to use those sales. If there are a lot of short sales and foreclosures in your market the simple fact is that you will be competing with short sale and foreclosures and must price accordingly or you won't sell.
If you can't price competitively hold on to your property and sell later. In Key West Florida 45% of the properties that sell are short sales and foreclosures. It would be impossible not to consider short sale and foreclosure properties when a Realtor or home owner is looking at comparable properties.
If your market is stable and you have enough sales in your area there is a very small chance you won't need to use those sales. If there are a lot of short sales and foreclosures in your market the simple fact is that you will be competing with short sale and foreclosures and must price accordingly or you won't sell.
If you can't price competitively hold on to your property and sell later. In Key West Florida 45% of the properties that sell are short sales and foreclosures. It would be impossible not to consider short sale and foreclosure properties when a Realtor or home owner is looking at comparable properties.
- Sinead McAllister, "Oceanside Specialist"
- Contributions:142
Your question was cut off.
What is use in comparsions now that there are so many homes short sales,foreclosure how does one kno
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