Comps on homes (for sale, real estate, foreclosure)

[BC1234LI]

If an agent runs comps on a home, are they looking at homes CURRENTLY for sale or homes that have recently been sold?

I would think it would make more sense to go by sold homes, because you can list your home for whatever, but that certainly doesn't mean someone will get that price.

[Jrprofess]

If they are any good it would be recent sale prices, along with what it listed for.

[KellyFG]

they are supposed to use ssold homes excluding those that were in foreclosure or some other distress situation. Its supposed to be based on fair market value.

[totallyfrazzled]

Every time I have either bought or sold a home, my agent has included both recent sales and current listings in the comp sheets.

That said, there can be a wide range of difference between one agent and another regarding the definitions of both "recent" and "comparable".

Sometimes it's just not possible to get good comps using only recent sales (depending on the house in question being comp'd). Some are very very difficult to comp at all.

[TomMoser]

If it is for a buyer, I will focus on closed sales, as that is the most relevant information.

If it is for a seller, I will included closed sales (because that is what they can reasonably expect to get), expired listings (so that they can see that if they price too high their home will not sell), and homes on the market (because that is the competition).

[ambralita]

It's supposed to be sales within the last 6 months to the present. And the qualifications are getting very strict (i.e., the comps have to meet certain requirements to be accepted, i.e., same style house, same # of BR, certain distance from original house, etc.). If the minimum number of comps is not producing fair results, the appraiser will look at more houses. We actually had our PMI insurance DENIED b/c the comps were not accepted in relation to the appraisal. Apparently "they" are getting very strict. We lost the deal.

[scottzilla]

When I was selling my house, I toyed with the idea of listing it for $1 but didn't have the guts. I figured, let the buyers tell me what my house is worth. If they could offer me a valid offer and show how they came up with said offer, I would sell them my house.
They are doing the research already, yes? They already know what they can or are willing to spend, yes? They will use the same comps I have access to, yes?
I think more people need to think outside the box when it comes to real estate.

[Elke Mariotti]

Originally Posted by ambralita

It's supposed to be sales within the last 6 months to the present. And the qualifications are getting very strict (i.e., the comps have to meet certain requirements to be accepted, i.e., same style house, same # of BR, certain distance from original house, etc.). If the minimum number of comps is not producing fair results, the appraiser will look at more houses.

We are currently considered a "declining market"; at this point, lenders are looking for appraisals based on sales no more than three months back, if at all possible.

Originally Posted by ambralita

We actually had our PMI insurance DENIED b/c the comps were not accepted in relation to the appraisal. Apparently "they" are getting very strict. We lost the deal.

Because of the newly enacted law with regard to appraisals (effective May 1st), you are not alone - appraisers are very conservative in their valuation. In addition, since the lenders don't have direct contact with the appraiser prior to the appraisal (work is being assigned via a pool), you can't even be sure that the appraiser is familiar with a specific "neighborhood"--which can make quite a difference on Long Island...

[Elke Mariotti]

Originally Posted by scottzilla

When I was selling my house, I toyed with the idea of listing it for $1 but didn't have the guts. I figured, let the buyers tell me what my house is worth. If they could offer me a valid offer and show how they came up with said offer, I would sell them my house.
They are doing the research already, yes? They already know what they can or are willing to spend, yes? They will use the same comps I have access to, yes?
I think more people need to think outside the box when it comes to real estate.

Your idea is basically a very good one, from a marketing point, though not with a starting amount of $1
Occasionally, a house is being offered "below" market and ends up being sold for more, with multiple offers--the "market" has a way of finding its own value...

[TomMoser]

Also, auctions seem to be making a resurgence.